09/28/2018
Man oh man. Be prepared to have tax clients angry and thinking you don't know what you are doing next year. I watched a webinar on the basic tax reform changes like standard deduction, ctc. He provided this example:
Married couple with 4 children made roughly 81k, had 9k fed tax withholding and about 41k in itemized deductions which resulted in a 12k refund for 2017. Now if we applied 2018 tax reform....are you ready for this....
The couple is no longer able to itemize due to doubling standard deduction and phaseout with deductions and the big one no more personal exemptions of 4k for each member of the household which is a 24k loss off the top! Final result refund is now 5k!!!!! Remember they paid IRS 9k but only getting 5k!!! SMH
How you get less back then what you put in. Not a good look. I think this will effect families of 4 or more due to losing that 4k exemption for each member
Call your clients or do a sample 2017 real return and convert it to 2018 by just overriding the standard deduction and exemption fields to see what they would have gotten last yr if this was in effect.
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Jamecia Arestil
Jamecia Arestil I was trying to figure it out on how to explain to them because they won't get it. All they know they will get $2k for each child lol...
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Amber Darling Whitehead
Amber Darling Whitehead Jamecia Arestil n thats y ppl.think they getting so much back cuz of that n doubling the standard. I knew it all along. Have fun explaining n dealing with irate clients who gonna think u incompetent. U know every yr they like ummm I got back $$ why I'm getting this now or my friend got back this I'm going to where she go. Lol
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Jamecia Arestil
Jamecia Arestil Lol
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Jamecia Arestil
Jamecia Arestil I know, right. My brain is not ready
