US Income Tax

[PillowDetails]

Starting to see a few tweets about tax returns taking people by surprise - some who typically got a refund are now owing, and some were told by their tax preparers last year to have more withheld from their paychecks, because of this.

All I want to know - when you finish your taxes - is this chart accurate?

[littlethingsvintage]

Pillow, have not done taxes yet. But I'm seeing a lot of posts and tweets in this vein too, and it's making me very nervous.

[littlethingsvintage]

From what I'm understanding, people are experiencing higher tax liability since the mortgage interest and property taxes are no longer itemized deductibles. I haven't gotten into it, and our house is paid off, but if true that's a major problem. It will effectively kill the housing market. Why pay inflated prices for a house when there's no tax advantage? 

Some of Trump's cronies (notable Hannity) have gotten wealthy by getting first shot at reposessed homes from the FHA (well under market). Is this the plan, they want to be landlords for the whole country?

[PillowDetails]

Just talked to my son - he's not a home owner.  Made more income last year, got less refund this year.  Not sure if he bumped into a higher tax bracket.

[marandydesigns]

if his income went up did he check to make sure he was still having as much withheld? anyway someone has to pay for all the rich to get their tax cuts

[NgetalChildStudios]

What most have been saying, that chart is not accurate, though I can't be certain. My understanding is that the IRS was pressured to dramatically reduce the amounts they withheld so people would see more money per check. This would in turn bolster their approval for the tax overhaul. But combined with the elimination of personal exemptions, caps on some deductions, and change of tax brackets, most are getting hit really hard. I'm nervous to file, but I will be within the next week. I'll let you know how it goes. :x