I’ve been using TURBOTAX for over a decade. It provides a quick way to do your taxes. But this version for 2018 annoyed me. First, after installing the program, TURBOTAX wouldn’t start. After several tries, I gave up and reinstalled TURBOTAX. Not a good start. I transferred my data from last year’s tax returns and began the process of entering information. The laborious process of adding all our charitable contributions took me about a half an hour. Then the kicker: with the new tax changes, those charitable deductions didn’t count. TURBOTAX suggested I just take the Standard Deduction. All that work for nothing!
With the Standard Deduction, we ended up owing the Feds. Then I downloaded the NEW YORK STATE software and once again TURBOTAX did its bump and grind only to tell me I owed money to NY State, too. Not the news I was hoping for. Obviously, Diane and I have to increase our withholdings for 2019. Have you done your taxes? Are you getting a refund?
Already got my refund. A little over a grand back. Most of my income is social security. I only pay taxes on money I withdraw from my IRA and I get it all back. I also use turbo tax.
Steve, I need up increase my withholding so I don’t have to pay again next year. My goal is just to break-even on our taxes.
Suffer, capitalist swine! We members of the proletariat use the EZ form!
Bob, I used to get a better break when I could itemize. I also used to be able to deduct expenses when I worked as a Professor. Those perks are all gone now. The Standard Deduction sucks.
It’s true. Jackie used to get a lot of deductions as a teacher. There were even years when she was able to deduct part of the expenses of our trips to England because she was buying books for school, or (supposedly) doing other “educational” things while we were there. Charitable donations are another thing. Trump gives nothing to charity, as we all know, so I guess they believe anyone who does shouldn’t get credit for it.
Unbelievable. These people give most grifters a bad name.
Jeff, our past charitable contributions reduced our taxes. But under the new Tax rules, they count for NOTHING! We didn’t give money to charities to get a tax break…but it was nice to get a tax break because of our giving. Under the current Tax system, 90% of tax payers will be forced to take the Standard Deduction…and likely pay.
Our paperwork is with the person who does our taxes, but I know we’ll owe this year because John changed jobs in October and was paid as an “independent contractor” for the last three months of the year and got a 1099-Misc rather than a W2 from them—no taxes withheld, no social security taken out. We’ve held back about 40% of what he earned, hopefully that will cover what we owe. Meanwhile, as long as he’s working for this company, we’ll have to start remitting to the IRS quarterly.
Deb, you were smart to put aside 40% to cover Social Security and taxes. Good luck!
Good luck everybody!
I already read about Donald’s new tax structure – really strange.
That reminds me of my work as a freelancer in IT in Germany many years ago:
I tiold my family and colleagues that of the money I got one third was for business (computer and office material, hotels, flights, the car etc …) one third was for the state – and one thirs was my real income!
Seems this is now even worse in the USA …
Consideringthat the gigantic IT enterprises often seem to pay no tax at all ???
Wolf, global companies like APPLE and GOOGLE can move money around so they reduce (or eliminate) any taxes. Individuals can’t do that.
What? How can such be? You mean, after the Donald Trump Largest Tax Cut in History you had to pay? Inconceivable!
We aren’t in a great hurry. We’re doing ours in mid-March as usual. Why rush to find out we owe money?
Jeff, plenty of my friends at the pool are grumbling that they either have a smaller refund than they’re used to…or they have to pay taxes for the first time in years. The Trump/Republican Tax Cut is not popular here.
In the past, Phil has always done ours and since he pays more than he should all year, we always got money back. I am worried about him doing it this year. But he claims he can.
Patti, after doing my taxes this year I’ve come to the conclusion that I only need four pieces of information: Diane’s Social Security SSA-1099 form, Diane’s pension on a 1099-R, my SSA-1099, and my 1099-R. That’s it. I doubt I’ll even use TUBROTAX next year. Taxes are easier, but we’re all going to pay more.
I’ll be dropping our information off at the tax preparer later today. We already pay quarterly estimated, because Oregon won’t take withholding from California pension. We have some charitable donations, but don’t expect them to matter. We used to get a refund from the Feds and pay a little to the State. I expect this year, with the RMTL (rich man’s tax law) we will pay.
Rick, a lot of CPAs are going to be unhappy, too. When tax payers realize they’re forced to use the Standard Deduction, who needs expensive tax preparers? I feel sorry for the charities. I fear many people may stop giving because it isn’t deductible anymore.
I keep reading that the IRS says “most taxpayers” will receive the same refund or pay about the same. Which may be true for households with 30K or less, but the middle class, if such still exists, will be screwed.
Rick, income inequity is getting worse. The Middle Class is shrinking. I can see growing poverty among Senior Citizens. Some of the people I talk to at the pool each day tell me sometimes they have to choose between buying their medications and buying food.
More bad news. Our tax firm, 1st Choice Tax, is dissolving, the two CPAs, in their mid 60s, are retiring. To make it worse, the company is now an H&R Block. We’ll go ahead with this year because our information is there, but I WILL NOT continue with that company. So depending on this year’s outcome, we’ll either go with Turbo Tax or file ourselves, though, with having to pay estimated, I’m not sure how that would work…
Damn and blast the GOP and it’s leader for screwing the American public in the name of “tax cut” that’s really just a huge corporate sop. BAH!
Rick, sorry to hear about your tax woes. Unless you’ve got a complicated return, given the new Standard Deduction and deduction limits, TURBOTAX might be your best solution.
It’s the out of state pension with no withholding that messes things up. But TurboTax is probably how we’ll go next year. I used it before we moved to OR.