Community Chat

[shoekitty]

Worst uear we ever had.  Paid 4 times the refund we used to het.  Same income too!

[golding76]

We were stunned by the great leap in our taxes, too.  A staggering amount was demanded by Uncle Sam.  

Somehow I missed that donations (at least those in my league) are no longer deductible.  Was I the only one in the dark on that?

[shoekitty]

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@nomless wrote:

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@ScrapHappy wrote:

We did.  OUCH!  Getting back less than 20% of what we received last year.  I guess we should be happy we don't have to pay....but OUCH!

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The size of your refund doesn't mean much. You may have had less withheld last year, thus making your refund smaller. Better to look at the total tax you paid the past two years if you want to make a comparison, not the size of your refund.

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Shoekitty said

oh yes, the amount of our tax bill was higher.  It was awful.

[FrostyBabe1]

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@golding76 wrote:

We were stunned by the great leap in our taxes, too.  A staggering amount was demanded by Uncle Sam.  

Somehow I missed that donations (at least those in my league) are no longer deductible.  Was I the only one in the dark on that?

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Charitable donations are still deductible if you itemize rather than taking the standard deduction. However; the standard deduction increased to the point where it's simpler and more beneficial for many people to take that deduction rather than itemize. 

[sashamatthews]

There should be a 10% flat tax.  Skip the deductions, pay 10% and be done with it.  In that way, everyone would have to contribute and no one would earn money essentially tax-free.

[golding76]

FrostyBabe 1,

Thank you so much for your response.  For years, we have gone to the same CPA, and the head of the outfit was a really nasty man this year.  

I asked about my itemized deductions, and he rudely asked me if I kept up with the news (which I do slavishly).  He then said that unless I have given $16,000 (which he then corrected to $12,000), it does not count.

At this time, I am trusting you more than him.  This CPA and I are at the end of our relationship, I am afraid.  It was really painful to be near him this year.

[FrostyBabe1]

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@golding76 wrote:

FrostyBabe 1,

Thank you so much for your response.  For years, we have gone to the same CPA, and the head of the outfit was a really nasty man this year.  

I asked about my itemized deductions, and he rudely asked me if I kept up with the news (which I do slavishly).  He then said that unless I have given $16,000 (which he then corrected to $12,000), it does not count.

At this time, I am trusting you more than him.  This CPA and I are at the end of our relationship, I am afraid.  It was really painful to be near him this year.

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Yes, it sounds like it's definitely time to break up with your accountant and find someone new. After all, you're employing them, not the other way around.

I'm not an accountant. I merely have a finance degree, loads of experience and know enough about the tax code to be conversant with my CPA. Every one has a different level of knowledge, as well as comfort and the person you employ must be able to meet you at that level.

Telling you that your donations didn't count unless you'd given $12,000 is absolute nonsense. The TOTAL of your allowable itemized deductions needed to be in excess of $12,000 in order for it to make it worthwhile to itemize. 

[golding76]

FrostyBabe 1,

Once again, thank you for sharing your knowledge.  I envy your background.  Perhaps it shows between the cracks, but I am challenged when it comes to finances, taxes, etc. Talk of money sends me into a tizzy.

This CPA was the one who handled my late husband's business account for a time (as well as our personal return).  We then went to another individual (who mysteriously disappeared from the face of the Earth; his tax prep business was a sideline), and then we returned to the original (now snappy) CPA.  We've been back with him for nearly a decade, if not longer.  He always coddled us in the absence of my husband. 

I was shocked and, of course, let him know what I thought of his recent treatment.  I do not suffer foolish behavior well.  My favorite personal statement is:  "I abhor injustice, and I particularly hate it when it applies to me."  The last part is for mirth...

[esmerelda]

For the first time I had to pay both. Fortunately, thanks to Suze Orman’s advice early last year, the money was already set aside for that.

I itemized, but the standard deduction was better for me this year by about the same amount as the personal exemption used to be.  So now I know… if next year looks about the same as this year, I won’t bother itemizing. I’ll just take the standard deduction and be done.

I used TurboTax.

eta...Rereading my post, I'm almost confused!  I did itemize just to compare against the standard deduction and in the end took the standard deduction.  There.  That's clearer...I think.

[ScarletDove]

Retired 5 1/2 yrs ago at age 71, have a pension, SS, IRA payout. Since not salaried and/or taxes taken out by employer, not affected. Nothing changes year-to-year except itemized deduction amounts and/or IRA payout. I have a set amount of fed&st tax I chose to be withheld from pension/ SS where applicable so that remains unless I change amounts. Fed/st tx taken out of IRA payout. I provided all necessary info to preparer and he said they would look at all the info to see if standard deduction or itemizated best.  Based on my own pre-calculations thought itemizated best and it was. Will receive refunds.