The Numbers are In

Moderators: HopefulSSer, admin

User avatar
dusty
Platinum Member
Posts: 21358
Joined: Wed Nov 22, 2006 6:52 am
Location: Tucson (Wildcat Country), Arizona

The Numbers are In

Post by dusty »

The numbers are in and I have completed an initial pass at doing my 2017 Income Taxes.

There is some good news for those of us (Social Security recipients) who receive a COLA. The good news is that this was one of the highest COLAs we have received in several years.

But don't rush out and spend any of it!

At the same time the Medicare premiums have changed. Would you believe it. The Medicare Premiums (for both my wife and I) increased by EXACTLY the same amount as the Social Security benefits. A total wash - right to the penny.
"Making Sawdust Safely"
Dusty
Sent from my Dell XPS using Firefox.
User avatar
curiousgeorge
Platinum Member
Posts: 880
Joined: Tue Feb 27, 2007 1:00 am
Location: Fort Worth, Texas

Re: The Numbers are In

Post by curiousgeorge »

He He. What a coincidence on the total wash. Oh! I forgot. I don't believe in coincidences with the government and money maters.
User avatar
dusty
Platinum Member
Posts: 21358
Joined: Wed Nov 22, 2006 6:52 am
Location: Tucson (Wildcat Country), Arizona

Re: The Numbers are In

Post by dusty »

curiousgeorge wrote:He He. What a coincidence on the total wash. Oh! I forgot. I don't believe in coincidences with the government and money maters.
HE He. What do you mean? You can laugh at this but this means I live in 2018 on the same amount of money or less than I made in 2016. I have not paid the income taxes yet. No pay raise again this year. Maybe I'll be spared by a reduction in the real cost of living in 2018. What are the chances that prices will be reduced? Ha Ha!

We (wife and I) ended 2017 with only a slight decrease in net worth ($2,551.07) and that does not include a PowerPro. That is still sometime in the future.
Last edited by dusty on Mon Dec 11, 2017 9:29 am, edited 1 time in total.
"Making Sawdust Safely"
Dusty
Sent from my Dell XPS using Firefox.
garys
Platinum Member
Posts: 2075
Joined: Wed Mar 02, 2011 12:16 am
Location: Bismarck, ND

Re: The Numbers are In

Post by garys »

I'm not ready yet to put together the final numbers. To be accurate, I really need to wait past the end of the year. I should be able to do it right after the first of the year.
I don't expect any real surprises unless Congress and the President pass their tax reform bill. Then, anything could happen if everything changes.

If things stay as-is, the IRS can expect a nice little check from me again. So, I pay it and try to keep my mouth shut about having to pay for those who don't want to work, but want their handouts from the income of retired people who worked all their lives.
User avatar
dusty
Platinum Member
Posts: 21358
Joined: Wed Nov 22, 2006 6:52 am
Location: Tucson (Wildcat Country), Arizona

Re: The Numbers are In

Post by dusty »

garys wrote:I'm not ready yet to put together the final numbers. To be accurate, I really need to wait past the end of the year. I should be able to do it right after the first of the year.
I don't expect any real surprises unless Congress and the President pass their tax reform bill. Then, anything could happen if everything changes.

If things stay as-is, the IRS can expect a nice little check from me again. So, I pay it and try to keep my mouth shut about having to pay for those who don't want to work, but want their handouts from the income of retired people who worked all their lives.
As long as you are in a middle income bracket I do not believe you will see much of a change as a direct result of the Tax Reform Bill.

If you study the information that has been released (NOT THE NEWS MEDIA), you will find that just like my Social Security vs Medicare Premium most of the changes will offset one another.

The Tax Reform may simplify reporting but it will do little for the low to middle income wage earner other than that.
"Making Sawdust Safely"
Dusty
Sent from my Dell XPS using Firefox.
User avatar
jsburger
Platinum Member
Posts: 6396
Joined: Fri Jul 21, 2006 4:06 pm
Location: Hooper, UT

Re: The Numbers are In

Post by jsburger »

garys wrote:I'm not ready yet to put together the final numbers. To be accurate, I really need to wait past the end of the year. I should be able to do it right after the first of the year.
I don't expect any real surprises unless Congress and the President pass their tax reform bill. Then, anything could happen if everything changes.

If things stay as-is, the IRS can expect a nice little check from me again. So, I pay it and try to keep my mouth shut about having to pay for those who don't want to work, but want their handouts from the income of retired people who worked all their lives.
It has usually been mostly a wash over the years between federal and state taxes. I always owe state because Utah does not require withholding from my military retirement. So I don't, I pay at the end of the year instead of all year long. We sold one of our houses here in Utah 2 years ago so we don't have that deduction any more. We paid off the house we live in in August so we have that deduction this year but next year taxes will go up again.

We still have the two rental properties in Sacramento so they will count and we always are able to show a loss on the taxes. Yes, when we take a trip to Sac to visit family we can deduct 1/2+ of the cost because we are going to Sac to "check on our property". Yes it is legal.

If you could do it why wouldn't you? It is not only for the "rich". We can all do it if you educate yourself and know.
John & Mary Burger
Eagle's Lair Woodshop
Hooper, UT
User avatar
Ed in Tampa
Platinum Member
Posts: 5826
Joined: Fri Jul 21, 2006 12:45 am
Location: North Tampa Bay area Florida

Re: The Numbers are In

Post by Ed in Tampa »

My inlaws both deceased used a high dollar tax guy and did everything legal as far as they knew. My father in law had his own business in NY and lived in SC so he would deduct his expenses to travel to NY to check on things. Guess what IRS said no. They then began an audit. They dug into everything, everything. They seized every scrap of paper they could. The audit even effected their children. Example at times we would visit and need more spending money, so instead of messing with an out of town bank situation we would write them a check and they would cash it for us. All on the up and up. IRS found one of the checks and demanded we provide them details of each transaction including copies of all cancelled checks.

It was a mess! They hired an attorney and spent years before it was settled. IRS had threatened to take everything (house, business, car, land). It was very bad! End result after years of anguish that involved friends and family it got settled. Settlement was couple hundred dollars to iRS, thousands to a tax lawyer. But the biggest effects of the whole process was that it took years off my mother in laws life.

I learned, I do my taxes so nothing can be questioned (use standard deductions and etc.). I want nothing to do with the IRS. When I finish my taxes I always divide my gross income by the actual amount I must pay and each year my percentage is far below what everyone else claims they pay.

Audits are few and far between but when they happen the IRS makes them as nasty as possible so people hearing the horror story thinks twice. It worked for me.
garys
Platinum Member
Posts: 2075
Joined: Wed Mar 02, 2011 12:16 am
Location: Bismarck, ND

Re: The Numbers are In

Post by garys »

I'm with you Ed. I have taken the standard deduction all my life and paid the full amount. It really simplifies the tax return, and there is never an issue with any itemized deductions that might be questioned in the future.
I'm sure I've paid more than my share all my life and I continue to pay more than my share in retirement too.
After all, somebody has to support the bums who don't pay. :)
User avatar
jsburger
Platinum Member
Posts: 6396
Joined: Fri Jul 21, 2006 4:06 pm
Location: Hooper, UT

Re: The Numbers are In

Post by jsburger »

Well, I finally got all the numbers. All of our retirement income, pensions not other retirement income, comes from the government. There was a 2% COLA increase this year. As Dusty said, that is the largest in years. That amounted to a total of $112 a month with my military retirement, both of our civil service retirements and my social security. My wife does not get social security because she is under the old federal CSRS retirement system and did not pay social security tax when she worked for the government.

As far as medicare and social security being a wash, that is not necessarily true. It depends on things like if you are receiving disability income or are just retired and collecting social security. The law says that your SS amount can never go down. They have to pay you at least the same or more. If medicare goes up more than SS then the medicare deduction is adjusted so that your SS does not go down.

Here is my example from this/last year. Last year I was paying $109 for medicare. The actual rate for medicare last year was $121. Because there was no increase (or very small, I don't remember) in SS last year they could not charge me the full medicare rate because my SS amount would have gone down. This year my SS went up $32 (2%) and medicare went up to $134. The medicare increase was only $25 from last year. So the result is a $7 increase in my SS.

Is Dusty's case a coincidence? Certainly not. It is a result of his particular circumstance. By the same token it is not the same for everyone. Some of us did get a net SS increase.

It is not smoke and mirrors. It is all based on laws on the books.
John & Mary Burger
Eagle's Lair Woodshop
Hooper, UT
User avatar
dusty
Platinum Member
Posts: 21358
Joined: Wed Nov 22, 2006 6:52 am
Location: Tucson (Wildcat Country), Arizona

Re: The Numbers are In

Post by dusty »

Smoke and Mirrors or not, the fact remains that I have gotten a 2% COLA increase that has resulted it NO INCREASE in take home. An absolute wash.

Maybe it will be better next year, after tax reform. :eek:

BTW, I itemize. The standard deduction was OK back before I took on the second career (increased income) but no more. Furthermore, I have never been audited but I do have quite a collection of receipts. The Feds say you must have 7 years worth of receipts to support an audit but I have everything way back to high school when I worked for Mom in the restaurant/bowling alley.
"Making Sawdust Safely"
Dusty
Sent from my Dell XPS using Firefox.
Post Reply