My tax return was better than last years, and Im middle class, getting back between Feds and State about 13k
You have a bunch of kids. The child tax credit is better. Middle class people who own homes and no kids got hosed. Not all, but that is pretty much the only demographic that got hosed. The point is, there should NEVER be a tax cut that is detrimental to the middle class. Especially when rich people get tax cuts. My situation is I pretty much broke even in total tax liability. And I have 1 kid.
I have 4 kids but the tax credit didnt change that much, and our tax return was about 3.5k better so it wasn't just the extra kid.
The child tax credit increased from 1,000 per kid to 2,000 per kid under trumps tax reform. Also, there wasn't that much of a change from 2018 to 2019. 2018 was the first year of trumps tax reform. The big change was from 2017 to 2018. 2k of your increased refund was your new kid. The other I don't know. Your situation had to have changed somewhere. You should be able to tell easily just by comparing them.
Well only 1400 is refundable, but yeah it helps to have kids during tax season. Also I know not everyone can but we always put more in during the year to make sure were covered in the spring.
1400 is refundable if you don't owe tax. Each kid takes off 2,000 from your total tax liability Meaning, you get to keep more of what you withheld. I owe 10,000 in tax. I have 1 kid. I get a 2,000 credit. I now owe 8,000 in tax. I withheld 20,000. I get a 12,000 refund. My refund isn't limited to 11,400 because of the child tax credit.
Ok, but I didnt question any of that. All I did was say that year over we did slightly better then last year, and Id have to look again but Im pretty sure it wasnt all the tax credits. Also most of the people that are telling me they got screwed, are getting refunds just not as big as they want it to be. No one is saying that tax cuts for the wealthy is good, and just cause I mention I did better this year then last doesnt really make an argument that Trumps tax cuts were good for everyone.
Tax tables change based on what the irs and state want it to be. You can get a larger refund year over year because you increased your withholding or changed or exemptions or filing status. The tax tables were purposely changed so people would feel they had more cash in their pockets from 2017 to 2018. What happened is that many people underwithheld due to that and were annoyed because they have no idea about anything in the taxes world. Refunds are great for people that get them but what matters is the tax paid year over year. If you got 3500 more back of course it wasn't all credits. 2000 of it likely is from your additional child. You can compare your two returns to see very easily.
You should look at liability not return to make a better comparison. I have no kids so it appears that is why I am in the screwed bracket.
I'm not really sure where you're trying to go with any of this. I'm not opposed to taxing higher incomes more. I don't know exactly what my year over year taxation was, but I do know that throughout the year our living conditions were consistent and good, never really felt strapped financially, more just strapped for time. I do realize that not everyone had that experience.
This year should have been better for most because of the Oregon kicker. It was a hefty 17ish% this year. That would explain why some got a bit if a jump in money back too.
That is ridiculous. Would you invest 13k in a project that promised you only your money back in 12 months? That's essentially what you are doing.
Hey if you're okay with giving the government 13k to play with for the year then who am i to say anything.
He does make a valid point. I've always felt that the goal of tax withholding should be to match your eventual tax liability as closely as possible. No reason the government should hold onto my money.
It's your money & ultimately your decision but why wait until you file your taxes from the previous year in order to receive money that's already yours?
My oldest daughter is the same way and time after time I explained to her that it's her money the government is holding on to and won't give it back to her till late spring the following year.
