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Economics Discuss IRS waives withholding penalty; warns number who owe taxes likely larger than in rece at the Political Forums; https://www.al.com/news/2019/01/irs-...ent-years.html The Internal Revenue Service will waive penalties against taxpayers who withheld too little last year, the agency announced. The ...

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Old 01-17-2019, 11:44 AM
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Default IRS waives withholding penalty; warns number who owe taxes likely larger than in rece

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https://www.al.com/news/2019/01/irs-...ent-years.html

The Internal Revenue Service will waive penalties against taxpayers who withheld too little last year, the agency announced.

The fee – known as the estimated tax penalty – will be waived for any taxpayer who withheld or made quarterly estimated tax payments totaling at least 85 percent of their taxes due. The usual percentage threshold to avoid a penalty is 90 percent.

The waiver comes just as millions of Americans file for the first time under the Trump administration tax plan.

“We realize there were many changes that affected people last year, and this penalty waiver will help taxpayers who inadvertently didn’t have enough tax withheld,” said IRS Commissioner Chuck Rettig. “We urge people to check their withholding again this year to make sure they are having the right amount of tax withheld for 2019.”

The updated federal withholding tables, released in early 2018, generally reflected the lower tax rates and increased standard deduction brought about under the new law, meaning taxpayers had less tax withheld and saw more in their paychecks. The withholding tables didn’t factor in all variables, however, such as changed to dependency exemptions and reductions in itemized deductions. As a result, some taxpayers paid too little tax during the year, the IRS said.
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The IRS warned taxpayers last month that some, including those who had previously received refunds, may find themselves owing taxes this year.

“Although the Tax Cuts and Jobs Act, the tax reform law enacted last December, lowered tax rates for most people, it also nearly doubled the standard deduction and limited or discontinued many deductions, among other changes,” the IRS said. “Though most 2018 tax filers are still expected to get refunds, the number who owe tax, and in some cases a penalty, is likely to be larger than in recent years, and many of them are likely to be people who have always gotten refunds.”

The IRS will begin processing tax returns on Jan. 28.


So all the Trump administration did was make employers withhold less. That is how you got more in your paycheck. Catch is they didn't withhold enough so now you owe, but "great" guy waives penalty for not withholding enough which wasn't your fvcking fault in the first place.
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Old 01-17-2019, 12:53 PM
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Default Re: IRS waives withholding penalty; warns number who owe taxes likely larger than in

Your employer doesn't know what deductions you claim or your filing status so they cannot adjust your withholding so you can foolishly keep giving the government an interest free loan on your money.

The tax reform got more people more money in their pay check by cutting taxes. Stop the whining expecting employers to manage employees withholding.
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Old 01-17-2019, 03:50 PM
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Default Re: IRS waives withholding penalty; warns number who owe taxes likely larger than in

Please Salty, read and understand the subject before you go head first into an empty pool....


Quote:
We still have seven brackets for income tax but lower tax rates. These changes will become apparent in the withholding for February 2018 pay checks. This only lasts until 2026, though.
The standard deduction you can now take has been doubled to $12,000 per single person. Married and joint taxpayers will see their deduction go up to $24,000 from $12,700, but in 2026 it will return to the 2017 level.
This is big news because 94% of taxpayers take a standard deduction.
Personal exemptions, however, are a thing of the past. That $4,150 deduction for each person claimed is a thing of the past. Now families with children may see their tax credits go up.
Most itemized deductions are also gone, which includes moving expenses and those paying alimony (the receiver can still take the deduction). Itemized deductions still apply for people in the military, making charitable donations, saving for retirement, and interest on student loans.
A big change is how the deduction on mortgage interest has been limited. It now only applies to the initial $750,000 of the mortgage. Also, you can’t take a deduction for interest on equity lines of credit. If you already have a mortgage, though, the rules remain the same.
https://nationaltaxreports.com/how-t...e_Taxes_Change

https://www.irs.gov/pub/irs-pdf/p15.pdf

https://www.forbes.com/sites/robertb.../#79a98b2a292a
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Old 01-18-2019, 06:35 AM
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Default Re: IRS waives withholding penalty; warns number who owe taxes likely larger than in

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Originally Posted by saltwn View Post
So all the Trump administration did was make employers withhold less. That is how you got more in your paycheck. Catch is they didn't withhold enough so now you owe, but "great" guy waives penalty for not withholding enough which wasn't your fvcking fault in the first place.
I see where you are confused.

When Obama claimed he cut peoples taxes, all he did was change the standard withholding tables effectively putting more money in peoples paychecks. However, their tax liability did not change. That meant that when they filed their taxes in the following year, their withholdings were generally less than their liability leaving them with a tax bill where most people would generally receive a refund.

This time, the actual tax rate changed which would also affect the withholdings. However, because of the change and how it may affect business trying to follow the withholdings, they know that mistakes will be made. This is just a way to not punish those that were acting in good faith.
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Old 01-19-2019, 03:05 AM
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Default Re: IRS waives withholding penalty; warns number who owe taxes likely larger than in

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Originally Posted by AZRWinger View Post
Your employer doesn't know what deductions you claim or your filing status so they cannot adjust your withholding so you can foolishly keep giving the government an interest free loan on your money.

The tax reform got more people more money in their pay check by cutting taxes. Stop the whining expecting employers to manage employees withholding.
If you still believe this was a tax cut for the middle class you're in line for some of that ocean front property GetaClue likes so much.
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Old 01-19-2019, 03:11 AM
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Default Re: IRS waives withholding penalty; warns number who owe taxes likely larger than in

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Originally Posted by GottaGo View Post
Please Salty, read and understand the subject before you go head first into an empty pool....

Quote:
We still have seven brackets for income tax but lower tax rates. These changes will become apparent in the withholding for February 2018 pay checks. This only lasts until 2026, though.
The standard deduction you can now take has been doubled to $12,000 per single person. Married and joint taxpayers will see their deduction go up to $24,000 from $12,700, but in 2026 it will return to the 2017 level.
This is big news because 94% of taxpayers take a standard deduction.
Personal exemptions, however, are a thing of the past. That $4,150 deduction for each person claimed is a thing of the past. Now families with children may see their tax credits go up.
Most itemized deductions are also gone, which includes moving expenses and those paying alimony (the receiver can still take the deduction). Itemized deductions still apply for people in the military, making charitable donations, saving for retirement, and interest on student loans.
A big change is how the deduction on mortgage interest has been limited. It now only applies to the initial $750,000 of the mortgage. Also, you can’t take a deduction for interest on equity lines of credit. If you already have a mortgage, though, the rules remain the same.

https://nationaltaxreports.com/how-t...e_Taxes_Change

https://www.irs.gov/pub/irs-pdf/p15.pdf

https://www.forbes.com/sites/robertb.../#79a98b2a292a
It will change 2 years after the bastard is out of office if he wins again.
After that (and he will teach his followers to blame Democrats for this )
The only thing left to wage earners will be gone
Cause they lost their mortgage deduction
They lost their state income tax deduction and
Most of their other deductions and
Now their standard deduction will return to pre Trump/Mitch levels

What a way to keep screwing the Class formerly known as Middle.
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Old 01-21-2019, 07:24 AM
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Default Re: IRS waives withholding penalty; warns number who owe taxes likely larger than in

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Originally Posted by saltwn View Post
If you still believe this was a tax cut for the middle class you're in line for some of that ocean front property GetaClue likes so much.
Speaking as someone in the middle class that does work for a living, I can positively say that my tax liability is less now that it was prior to the tax cut.

Just because people that sit around and collect money that the government confiscated from those of us that work for a living, believe MSM reporting and DNC talking points claiming there was no tax break, does not make it so.
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Old 01-21-2019, 08:39 AM
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Default Re: IRS waives withholding penalty; warns number who owe taxes likely larger than in

Quote:
Originally Posted by saltwn View Post
It will change 2 years after the bastard is out of office if he wins again.
After that (and he will teach his followers to blame Democrats for this )
The only thing left to wage earners will be gone
Cause they lost their mortgage deduction
They lost their state income tax deduction and
Most of their other deductions and
Now their standard deduction will return to pre Trump/Mitch levels

What a way to keep screwing the Class formerly known as Middle.
Exactly why should there be a mortgage deduction? Why should there be a State Real Estate Tax deduction? (Which, BTW, they didn't lose. You need to learn your talking points) The low/no income group doesn't have the ability to take these deductions, so why should the 'middle class'?

Interesting that you should know the future that these deductions won't be brought back... I have to guess that perhaps you do not see the Democrats taking a seat in the White House any time in the next decade?
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