If you haven't seen the new Form 1040 for the 2018 tax year - - - -

[treeguy64]

you're in for a real surprise: Yep, the standard deduction is now $12,000. Great, right? Not so fast. The IRS, in a great sleight of hand, has ELIMINATED the deduction for you and your dependents. In fact, for many, you will now be reporting a GREATER taxable income. Also, the old tried and true forms have disappeared, so it's going to be time to learn all about the forms that replaced them. Great fun. Sharpen up your pencils, y'all! Yee-haw! (The preceding is based on the Beta versions of the tax forms that are showing up, online, now. Maybe they won't end up being the forms we have to file. One can only hope.)

 

[Don M.]

I just got my H&R Block CD a few days ago....I'll just let them take care of the details and various forms, when I get all the W2's, etc., in late January. From what I've heard, so far, the Standard Deduction will increase slightly, and that's about all we can claim....with no debt, and thankfully, minimal medical bills, etc.

 

[treeguy64]

I just got my H&R Block CD a few days ago....I'll just let them take care of the details and various forms, when I get all the W2's, etc., in late January. From what I've heard, so far, the Standard Deduction will increase slightly, and that's about all we can claim....with no debt, and thankfully, minimal medical bills, etc.

You're correct, Don, about the SD. However, as I wrote, you no longer get any deductions for dependents, so it's actually a net loss, for many, out there, except the IRS, of course.

 

[Trade]

The IRS, in a great sleight of hand, has ELIMINATED the deduction for you and your dependents.

Don't blame the IRS. They have nothing to do with income tax legislation. That's your politicians in Washington. They write the tax laws. The IRS just enforces them. And discussing politics is off limits on this forum, so that's all I'm going to say on this subject.

I pretty much screwed up last year. Usually I try to set my withholding so that I only get a small refund. But last year we started my wife's social security. The formula for how much of your social security is taxable is kind of convoluted so I just went ahead and assumed it would all be taxable. But it turns out it only part of it will be. So I had too much withheld. Yesterday I kind of roughed out my taxes and it looks like I will be getting about $500 bucks back. So that will be the biggest refund I've gotten in many years. And with my luck it's in a year when we have a government shutdown going on which means there's no telling how long it will be before I can get it.

 

[JimW]

You're correct, Don, about the SD. However, as I wrote, you no longer get any deductions for dependents, so it's actually a net loss, for many, out there, except the IRS, of course.

The standard deductions for tax year 2018 have doubled and will result in a savings for most people. If your deductions total more than the new standard deductions of $12K for single filers and $24K for married joint filers, than you can still itemize. Not sure how you figure it's a net loss for many.

Good read on this here: https://www.fool.com/taxes/2018/11/18/its-official-the-2019-standard-deduction-is-gettin.aspx

 

[treeguy64]

The standard deductions for tax year 2018 have doubled and will result in a savings for most people. If your deductions total more than the new standard deductions of $12K for single filers and $24K for married joint filers, than you can still itemize. Not sure how you figure it's a net loss for many.

Good read on this here: https://www.fool.com/taxes/2018/11/18/its-official-the-2019-standard-deduction-is-gettin.aspx

The loss comes from having to report a larger taxable income, and pay higher tax, due to no longer getting the deduction for dependents. For those who are supporting a large family, with a fair number of young kids, the loss may be substantial.

 

[JimW]

The loss comes from having to report a larger taxable income, and pay higher tax, due to no longer getting the deduction for dependents. For those who are supporting a large family, with a fair number of young kids, the loss may be substantial.

Not so. Yes the deduction for dependents is gone, but the child tax credit has been doubled.

The 2018 Child Tax Credit Changes: What You Need to Know
[h=2]The new tax law greatly expands the Child Tax Credit for millions of families.[/h]
Matthew Frankel, CFP
(TMFMathGuy)

Jan 9, 2018 at 6:12AM



The recently passed GOP tax reform bill makes several major changes to individual tax laws in the United States. Some of the biggest changes were made to the Child Tax Credit, which affects most parents and guardians of children under 17 in the United States.
If you have children, here's what you need to know about the changes made to the Child Tax Credit for the 2018 tax year and how they could affect you.


The Child Tax Credit is being doubled for 2018

The Child Tax Credit is available to be claimed for qualified children under age 17. And you can claim it for all of your qualifying children in a given tax year. To be clear, the child must be under 17 at the end of the year to claim the credit.
For 2018, the recently passed GOP tax reform bill doubles the amount of the Child Tax Credit from $1,000 to $2,000 per qualifying child. In other words, if you have one child, you'll be able to claim a $2,000 credit. For two children, your credit is $4,000. Three children... well, you get the idea.
It's also important to emphasize that this is a credit, not a tax deduction. While a deduction reduces the amount of your income that is subject to tax, a credit reduces your tax bill dollar-for-dollar. If you owe the IRS $5,000 for the year, and have a $2,000 tax credit, your tax bill drops to $3,000.
https://www.fool.com/taxes/2018/01/09/the-2018-child-tax-credit-changes-what-you-need-to.aspx

 

[Ken N Tx]

 

[jujube]

Then there's the new 1040 EZ-PEAZY form.

It's a large manila envelope. On the front it says:

HOW MUCH DID YOU MAKE IN 2018? $________ PUT IT IN HERE.

 

[fmdog44]

I just got my H&R Block CD a few days ago....I'll just let them take care of the details and various forms, when I get all the W2's, etc., in late January. From what I've heard, so far, the Standard Deduction will increase slightly, and that's about all we can claim....with no debt, and thankfully, minimal medical bills, etc.

How does that work?

 

[treeguy64]

Not so. Yes the deduction for dependents is gone, but the child tax credit has been doubled.

Interesting. Everything is changing. I wish the actual forms were available, online. All I can find are the unofficial, do not file these, forms, so far.

 

[JimW]

Interesting. Everything is changing. I wish the actual forms were available, online. All I can find are the unofficial, do not file these, forms, so far.

I haven't seen any of the new forms either. I've been filing my taxes electronically with Turbo Tax for the last 5 or 6 years, much easier and cheap enough to do.

 

[Don M.]

How does that work?

Easy deal....I just slip the CD into the computer, and the tax software loads, and checks for the latest updates. Then, I just enter the data from my tax statements, and the software does the rest. There are all sorts of tips and suggestions in the software to help get the maximum refunds...plus an online chat option if I have any confusion. So long as I enter all the data correctly, I can usually get my Federal and State taxes done in just a couple of hours, file electronically, and have the refunds within a couple of weeks. Total cost is usually about $35. I've been doing this for years, and have had Zero problems. Unless a person has a complex tax situation, I would recommend that they use H&R, or TurboTax, and there is even a free service on the internet called TaxAct. If you have never used H&R before, you can visit their web site, and download, or get the CD, there.

 

[JimW]

Easy deal....I just slip the CD into the computer, and the tax software loads, and checks for the latest updates. Then, I just enter the data from my tax statements, and the software does the rest. There are all sorts of tips and suggestions in the software to help get the maximum refunds...plus an online chat option if I have any confusion. So long as I enter all the data correctly, I can usually get my Federal and State taxes done in just a couple of hours, file electronically, and have the refunds within a couple of weeks. Total cost is usually about $35. I've been doing this for years, and have had Zero problems. Unless a person has a complex tax situation, I would recommend that they use H&R, or TurboTax, and there is even a free service on the internet called TaxAct. If you have never used H&R before, you can visit their web site, and download, or get the CD, there.

I agree Don. Doing my taxes has never been easier since I started using Turbo tax, it leads you by the hand every step of the way.

 

[Trade]

I've been using Freetax to file electronically since 2012 which I like a lot. I've already done my 2018 return on their site because I know what all the numbers are going to be. However I'm just saving it as a draft until I get the actual 1099's. No rush anyway, with the government shutdown IRS won't be processing any refunds until that's over. They will however accept payments if you owe them.

 

[OneEyedDiva]

I just got my H&R Block CD a few days ago....I'll just let them take care of the details and various forms, when I get all the W2's, etc., in late January. From what I've heard, so far, the Standard Deduction will increase slightly, and that's about all we can claim....with no debt, and thankfully, minimal medical bills, etc.

I got the H & R Block CD in the mail one year and decided to use it but had a problem with it. There's one sitting on my table now but I won't use it. I started getting my tax CDs from Amazon. For $29 + tax. I get the H & R Block Premium with State. Since 5 people can use the program, my grandson uses it and we split the cost.

 

[KingsX]

.

I've purposefully stayed below the IRS threshold and have not been required to file a tax return in years.
And would continue on that path if not for future RMD when I turn 70.

 

[treeguy64]

As I suspected, the new forms are truly TERRIBLE! I am one who has to fill out many forms, but I was used to the (basically) same old same old, year after year. Now, the damn IRS and the legislators who dream up yearly ways to inflict more pain, have added more forms that are almost identical to what used to go on the old 1040. So, you are now forced to flip from page to page to page, to do what used to be done on one page. Gahhhhh!!!!