I was pretty sure President Trumps new tax plan was not going to help us - but I got a double whammy this morning. Not only will our taxes double - maybe more if they do cancel the deductions - which means I might have to ante up another few thousand dollars when I go in. Second, got in the mail the 1099 for my husbands retirement. For years he was in a group that paid into a separate retirement plan - other than SS. At some point they were required to pay SS, but a portion of the amount he had already paid was deducted from our taxable income. The 2017 1099 states he has used all the amount that was deductible, therefore 100% of his retirement income was fully taxable.
I don't know if this new plan has become fully implemented for, I'm already wringing my hands and groaning. DH won't understand it if I tell him, would make me feel better, but might just upset him - although he would forget it by the end of the day. We are losing ground every year. DH had to take early retirement due to cancer and we chose to take a lesser amount so I would be covered if he died first. That was 12/93. We have a good retirement, able to pay our bills and get along, but every year it gets chipped away some more. What looked good in '93 doesn't seem like a lot now. Medical deductibles higher, everything you have to buy is higher - we were already at the point of doing everything we could to decrease our spending - now have to take another look. We do have animals that cost, however, I think they are one thing that keeps DH going. The horses do cost some but he enjoys getting out and feeding them everyday, which is good for him. The dogs and cats he enjoys, I would hate to take that away from him.
I read someplace, maybe here, whatever happened to the golden years we were all looking forward?
I can't chew, I can't screw. My memore shrinks, My hearing stinks. No sense of smell, I look like hell. My body is drooping, I have trouble pooping. The golden years have come at last, The golden years can kiss my ___!
If that is so on the retirement I would be filling out paperwork right away for them to start deducting taxes from it. Or is you are disciplined put it aside every month and pay quarterly. I am sorry this has happened. They should have let you know last year when it changed.
Hi Charlotte, we pay our taxes quarterly, I'm concerned about the new tax bill that President Trump has proposed. We're meeting with an elder law attorney next week if all goes well and I hope to get some questions answered. If any of you read the AARP magazine, the one that came today is full of very good advice and tips in this area.
Nicky, I'm not sure what happened to my first post re your poem but I'm going to read it to DH this evening. :)
Oakridge, know what to withhold (or pay quarterly) is a big problem for most people. The bill (which is the Republican tax bill, Trump seemed to have little to do with it, he doesn't bother with details) was passed so late in the year that the IRS doesn't have time to make it recommendations for withholding. I suspect that my taxes will go up since I won't be able to deduct all of my property+state income taxes. That might be matched by lowing of the tax rate, but I will also lose the 3 personal exemptions. So who knows? I will continue with the same tax withholding since I end up with a large refund each year due to medical costs.
Be aware that the IRS is under a lot of pressure to lower the withholding recommendations a lot to make people believe that their taxes have dropped a lot. There is an expectation that the new IRS recommendations will result in many people having to pay a lot when they file their 2018 returns.