Anyone nervous to do their taxes?

[DisneynBison]

Well picked up the taxes and it looks like our effective rate went down a few percent. Not bad I will take it. Actually we got it back over the last year as less was taken out of pay checks and paid in quarterly. The tax act worked great for us!!!

 

[barkley]

If states have no income tax, do they pay exorbitant sales tax rates? Florida has no income tax, but they pay around 6% sales tax, so I'm assuming real estate tax and personal property tax must be high.

we've got no state income tax here in washington. state sales tax is 6.5% but city/county nearest us is 8.8%. property tax rates just went down for us in 2019 from 12.13% to 10.29%. low yearly vehicle registration fees.

where they tax like crazy is on 'sin' purchases-alcohol $3.7708 per litre PLUS 20.5%, tobacco $3.03 per pack, cannabis 37% excise tax PLUS applicable state and local sales taxes.

depending on your personal habits you can get by very reasonably.

 

[TwoMisfits]

we've got no state income tax here in washington. state sales tax is 6.5% but city/county nearest us is 8.8%. property tax rates just went down for us in 2019 from 12.13% to 10.29%. low yearly vehicle registration fees.

where they tax like crazy is on 'sin' purchases-alcohol $3.7708 per litre PLUS 20.5%, tobacco $3.03 per pack, cannabis 37% excise tax PLUS applicable state and local sales taxes.

depending on your personal habits you can get by very reasonably.

Those are pretty dang high, too.

 

[barkley]

Those are pretty dang high, too.

i won't complain-it's almost 40% LESS per year than i was paying 13 years ago on a comparably assessed valued home in california.

 

[TwoMisfits]

i won't complain-it's almost 40% LESS per year than i was paying 13 years ago on a comparably assessed valued home in california.

Damn, CA must have enormous insurance costs, too...

 

[barkley]

Damn, CA must have enormous insurance costs, too...

well we always paid above and beyond the minimum requirements b/c we wanted full coverage and more in case of earthquakes (separate coverage)- but i will say, the reason we got into an argument with/changed mortgage lenders at the last minute when we bought up here was because our california lender REFUSED to believe (despite written and verified in writing proof) that homeowners coverage was so much lower (they kept on insisting that NO STATE could offer the coverage-HIGH-that we signed up for at the rates we provided proof of. they insisted on escrow holds of over 300% more than the yearly premiums so we said 'bye-bye' and got another lender).

 

[barkley]

we've got no state income tax here in washington. state sales tax is 6.5% but city/county nearest us is 8.8%. property tax rates just went down for us in 2019 from 12.13% to 10.29%. low yearly vehicle registration fees.

where they tax like crazy is on 'sin' purchases-alcohol $3.7708 per litre PLUS 20.5%, tobacco $3.03 per pack, cannabis 37% excise tax PLUS applicable state and local sales taxes.

depending on your personal habits you can get by very reasonably.

I APOLOGIZE-i made a posting errorproperty tax-1.03%. HUGE DIFFERENCE (but still about 40% less than i paid years ago)

 

[TwoMisfits]

I APOLOGIZE-i made a posting errorproperty tax-1.03%. HUGE DIFFERENCE (but still about 40% less than i paid years ago)

That seems more like the norm...

 

[Frwinkley]

Taxes were ok this year. Even got a small refund after maximizing DH’s 401k and contributing a small amount to an IRA.

My question concerns next year: I am a school teacher in PA and will get a significant pay raise next year. I already contribute to my pension which is matched by the school district. Are there any other retirement vehicles available to us that would allow me to use pre-tax dollars so as not to take such a big hit?

I know people talk about using an HSA, but we are not eligible for one.

 

[tvguy]

Taxes were ok this year. Even got a small refund after maximizing DH’s 401k and contributing a small amount to an IRA.

My question concerns next year: I am a school teacher in PA and will get a significant pay raise next year. I already contribute to my pension which is matched by the school district. Are there any other retirement vehicles available to us that would allow me to use pre-tax dollars so as not to take such a big hit?

I know people talk about using an HSA, but we are not eligible for one.

Traditional IRA? If you are eligible.

 

[Frwinkley]

Did a traditional IRA and only a portion of it was deductible.

I am eligible to participate in a 403(b), since I am a school teacher. We already max out my DH's 401k. I'm thinking that I might throw some money into the 403(b). Unfortunately at this point, I don't know much about them.

 

[morgan98]

Virginia did the same. My effective state tax rate increased 1 percentage point. They’re giving us back a few hundred dollars in October but it’s still a big tax hike for me.

Same thing happened in GA. I was used to getting a relatively modest GA refund to help offset what I owed on the Fed return, but that is not the case this year. Yes, my effective Federal rate was lower, but the sting I feel from the state is real.

At one point GA was discussing decoupling from the Federal return and allowing itemized deductions on the state return, even if you took the standard deduction on the federal return. I think a nice compromise would be maybe allowing a deduction for your real estate tax on your primary residence?

ETA: I am a CPA and have been in the field since 1993, many of those year in tax (not now though). It was strange doing my return this year, as this year was so different and the forms are so different. I finally got up the nerve this weekend...lol!

Second Edit: I mean GA allowing a deduction for real estate taxes paid on your primary residence in GA. On federal, the cap of $10k for all state taxes is a done deal.

 

[morgan98]

Forms are quite strange if you have practiced for years in the past! Postcard, yeah right! Tax code changed, I get it. Imo, should have just incorporated the tax code changes into the existing forms, but then again, Trumps "claim to fame" of the postcard tax return, resulted in a total redesign. Why though did they have to redesign all the forms? The flow of the forms really isn't good. Much more difficult to follow.

Yes, I am was not impressed with the instructions at all! But it is what it is, I guess.

Anyway, now I am at least equipped to do the family members' returns who I get roped into doing each year...lol! I tried to tell them this year that it is proceed at your own risk.

 

[jerseygal]

Yes, I am was not impressed with the instructions at all! But it is what it is, I guess.

Anyway, now I am at least equipped to do the family members' returns who I get roped into doing each year...lol! I tried to tell them this year that it is proceed at your own risk.

That is funny!

 

[joedplumber]

We were happy with our taxes this year. In 2017 15.4% of our total income went to federal taxes. In 2018 only 12.2% went to federal taxes and our income for 2018 was a little greater than 2017.