Very Large increase in 2018 Taxes

Forum|Forum|7 years ago
January 28, 2019
22 replies
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Is anyone else noticed a huge increase in their taxes for 2018? I have been getting substantial tax refunds for the last 30 plus years, consistently. Last year was no exception. So in 2018 I increased my 401K contributions by 10% and I got a 2% pay increase as well with no change in filing status. One would think I would have done better this year and got at least an equal tax refund to last year's. But behold I started working my 2018 taxes in Turbo tax this week and I see a 20K increase in my taxable income. This change is the most monstrous change I have ever seen. Is this a result of the new tax laws? This increase has resulted in me actually have to pay taxes this year. So I went from getting a 3K plus refund last year to this. So again I ask again, is anyone else seeing this much change or is Turbo Tax just wrong?

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C

Concensio

Employee

Yes, there was a significant impact to me due to the cap on taxes (income and property). I lost over 20k in deductions related to property. Perhaps this affected you also.

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Geddy

Employee

For many, the new tax law was a trade off of large itemized (state income tax and property tax) minus AMT limitations last year versus increased standard deduction, no AMT and lower rates this year. For me, despite losing $20,000+ in deductions, slightly increased AGI, I had a slightly lower tax bill. Again, if not married, asingle payer status would probably flip that

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OhTheQuestions

Employee

A big tax increase! I'm in the low end of the tax bracket as a disabled former teacher and normally get back about $1,200. Even itemizing this year I am only getting back $582 - less than half the usual amount. My very slight increase in income this past year couldn't possibly account for this much increase, I wouldn't think; my taxable income in 2018 was only $9,389. The Republican tax plan sure didn't do this commoner any favors.

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PaulaM

Employee

You might look at your state, local, property and sales tax deduction (SALT). This deduction has been capped at $10,000. See this link for how the 2018 Tax Reform affects your taxes.

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