Weather
The Pine Tree, News for Calaveras County and Beyond Weather
Amador Angels Camp Arnold Bear Valley Copperopolis Murphys San Andreas Valley Springs Moke Hill/West Point Tuolumne
News
Business Directory
Weather & Roads
Sports
Real Estate
Search
Weekly & Grocery Ads
Entertainment
Life & Style
Government
Law Enforcement
Business
Wine News
Health & Fitness
Home & Garden
Food & Dining
Religion & Faith
Frogtown USA
Legal Notices
Calendar
Polls
Columns
Free Classifieds
Letters to the Editor
Obituaries
About Us

Coming Soon...
Tuesday, Nov 19
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
All Day Grad Night Wreath Fundraiser! Order Yours Today!!
10:00 AM Grief Support Classes Offered By Hospice of Amador & Calaveras
Wednesday, Nov 20
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
All Day Grad Night Wreath Fundraiser! Order Yours Today!!
06:00 PM Overeaters Anonymous (OA)
06:30 PM Overeaters Anonymous (OA) Meeting
Thursday, Nov 21
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
All Day Grad Night Wreath Fundraiser! Order Yours Today!!
02:00 PM Sierra Repertory Theatre's Production of Grease Runs Through December 15th
07:00 PM Global Belief Project Fundraiser Night
08:00 PM Darrell Scott – Multi-Grammy nominated country
Friday, Nov 22
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
All Day Grad Night Wreath Fundraiser! Order Yours Today!!
02:00 PM Sierra Repertory Theatre's Production of Grease Runs Through December 15th
07:00 PM The Games Afoot
Saturday, Nov 23
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
All Day Grad Night Wreath Fundraiser! Order Yours Today!!
10:00 AM Old Timers Museum Walking Tours Are Every Saturday at 10am.
11:00 AM Town Tours of Columbia State Historic Park Every Weekend!
02:00 PM Sierra Repertory Theatre's Production of Grease Runs Through December 15th
07:00 PM Chris Cain Band – Award winning blues guitarist extraordinare - at the Sutter Creek Theatre
07:00 PM The Games Afoot
Sunday, Nov 24
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
All Day Stevenot Music on the Patio Every Sunday
All Day Our Sunday Edition with Local Features, Local Specials & More Every Sunday All Day Long!
11:00 AM Town Tours of Columbia State Historic Park Every Weekend!
07:00 PM The Games Afoot
Monday, Nov 25
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
Tuesday, Nov 26
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
10:00 AM Grief Support Classes Offered By Hospice of Amador & Calaveras
Wednesday, Nov 27
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
02:00 PM Sierra Repertory Theatre's Production of Grease Runs Through December 15th
06:00 PM Overeaters Anonymous (OA)
06:30 PM Overeaters Anonymous (OA) Meeting
Thursday, Nov 28
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
01:00 PM Free Community Thanksgiving Dinner
Friday, Nov 29
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
02:00 PM Sierra Repertory Theatre's Production of Grease Runs Through December 15th
06:00 PM The 5th Annual Christmas in White Pines Parade of Lights!
07:00 PM The Games Afoot
Saturday, Nov 30
All Day Prescribed Burns Planned to Begin Week of October 21st at Calaveras Big Trees State Park
09:00 AM Christmas in the Country Craft Faire
09:00 AM "Christmas in the Country" Craft Faire, Breakfast, Lunch and Bake Sale
10:00 AM Old Timers Museum Walking Tours Are Every Saturday at 10am.
11:00 AM Town Tours of Columbia State Historic Park Every Weekend!
02:00 PM Sierra Repertory Theatre's Production of Grease Runs Through December 15th
06:00 PM Community Christmas Tree Lighting on November 30th at Big Trees Fitness & Smokehouse BBQ
07:00 PM Lacy J Dalton with Dale Poune – Country’s Queen – A Country Christmas show! At the Sutter Cree
07:00 PM The Games Afoot
Sunday, Dec 1
All Day Stevenot Music on the Patio Every Sunday
11:00 AM Town Tours of Columbia State Historic Park Every Weekend!
02:00 PM The Games Afoot
02:00 PM Sierra Repertory Theatre's Production of Grease Runs Through December 15th

Search Announcements




Log In
Username

Password

Remember Me



Posted by: thepinetree on 05/08/2019 01:41 PM Updated by: thepinetree on 05/08/2019 02:31 PM
Expires: 01/01/2024 12:00 AM
:

1040 Postmortem: Making Sense of Your Taxes and Withholding ~From Brian J. Tewksbury

Murphys, CA...The Tax Cuts and Jobs Act (TCJA), which passed in December 2017, made fundamental changes to the U.S. tax code, and 2018 returns were the first time most taxpayers could see the practical impact of these changes. In an April 2019 Gallup poll, 43% of Americans said they were unsure how the new tax law affected them personally. Surprisingly, 21% thought their federal income taxes went up in 2018, and 21% said they were about the same. Only 14% of respondents reported that their taxes went down, even though independent analyses and preliminary tax filing data suggested that about two-thirds of Americans would owe less in federal taxes in 2018.1-2




One reason for this apparent confusion might be because taxpayers tend to pay little attention to employer withholding, and any potential increase in take-home pay may have been less noticeable when divided into weekly (or biweekly) paychecks. It's also possible that many respondents didn't take the time to compare their tax burdens to the previous year and/or may not know how to do so. Despite a stated effort to simplify the federal withholding and tax filing process, the tax code is still complex, and many taxpayers don't understand the details and terminology.

Stay on top of withholding
About 73% of 2018 tax returns showed a refund, averaging $2,725.3 The amount of your refund or the amount you owe with your return has little to do with your overall tax burden. These numbers reflect whether your withholding and/or estimated tax payments during the year were more or less than your final tax bill.

In theory, your withholding should equal your tax liability; otherwise you are loaning your money interest-free to the government. But IRS formulas tend to err on the high side, partly because people usually dislike owing a balance and are often happy to receive a tax refund.

Employers estimate your federal tax bill based on the number of exemptions claimed on your W-4 Form and on IRS calculation tables. The IRS rather quickly released 2018 calculation tables reflecting the new rates and rules. However, the agency did not replace the W-4 Form and worksheet, which are based on exemptions, deductions, and credits that were reduced or eliminated under the new tax law.

This resulted in smaller refunds or higher tax bills than expected for some taxpayers, especially dual-income households with more complicated situations. The Treasury estimated that 21% of taxpayers would be subject to underwithholding because of the TCJA, compared with 18% if the tax law provisions had not changed.4

If you owed a large amount of money for 2018, bumping up your withholding now could help avoid a similar fate next April. You might also reevaluate your withholding If you received a large refund. You could make larger retirement contributions instead or take home more of your pay and put it to better use.

It's also a good idea to review your withholding whenever something changes in your life — such as a marriage, divorce, birth of a child, new job, or other significant change in your financial situation.

The IRS (irs.gov) has an up-to-date, online calculator that can help you determine the appropriate amount of withholding. You still need to complete and submit a current W-4 to your employer to make any adjustments. An all-new W-4 Form for the 2020 tax year is in the works but isn't expected to be available to employers until later in 2019.

Measuring the impact
How you fared under the TCJA depends on a variety of factors, such as how much you earned, your filing status, the ages of your dependents, and where you live. Undertaking a thorough side-by side comparison of your 2017 and 2018 returns could help you identify changes that affected your bottom line. Be sure to note differences in your allowed deductions, taxable income, and total tax liability.

New marginal tax brackets are likely to mean that much of your income is taxed at lower rates. But other provisions may add to or reduce that benefit.

Standard deduction amounts for 2018 roughly doubled to $12,000 for single filers and $24,000 for married taxpayers filing jointly. However, personal exemptions ($4,050 in 2017) for yourself, your spouse, and your dependents are no longer available. The expanded child tax credit may offset the loss of exemptions for many taxpayers, but the math may not work out in your favor if you're a family of four or more.

A number of tax deductions commonly used by high earners have also been modified, capped, or eliminated. For example, the itemized deduction for state and local taxes (SALT) is now limited to $10,000 ($5,000 if married filing separately). This provision caused tax increases for some taxpayers in high-tax states. On the other hand, the overall limit on itemized deductions that applied to higher-income taxpayers (commonly known as the "Pease limitation") was repealed, and fewer taxpayers are subject to the alternative minimum tax.

You might also consult a tax professional who can explain the relevant changes and recommend potential strategies to help reduce your tax liability for 2019.

What if you owe money and can't pay?
If you didn't file your 2018 federal income tax return because it's going to show a balance due, you should file your return immediately and pay as much as you can afford. This can help limit penalties and interest, and being up-to-date on filing is generally required to pursue a payment agreement with the IRS.

If you owe $50,000 or less, you may even be able to apply for a short-term extension (up to 120 days) or a longer payment agreement online. Interest and penalties continue to accrue on unpaid amounts.

1) Gallup, April 12, 2019
2) The New York Times, April 14, 2019
3) Internal Revenue Service, April 12, 2019
4) U.S. Government Accountability Office, 2018

 


IMPORTANT DISCLOSURES
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019.



What's Related
These might interest you as well
Calendar

phpws Business Directory

Photo Albums

Local News


Mark Twain Medical Center
Meadowmont Pharmacy
Bank of Stockton
Bear Valley Real Estate
Bear Valley Cross Country
Cedar Creek Realty
Cave, Mine & Zip Lines
Fox Security
Bistro Espresso
Pinnacle Physical Therapy
Chatom Winery
Middleton's Furniture
Bear Valley Mountain Resort
Paul D. Bertini
Premier Properties
High Country Spa & Stove
Calaveras Mentoriing

Ebbetts Pass Scenic Byway
Sierra Logging Museum
Jenny's Kitchen

Copyright © The Pine Tree 2005-2019