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Gavin

Winners and Losers in the Tax Bill

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Don't care to debate politics but there are some winners and losers in this bill.                                   Losers.                                                  -Higher Income families with Kids with itemized deductions over 28k. No exemptions for you our your kids, and loss of State & Local Tax deductions will kill you. Figure urban families making 150k and or so. My neighbor has 6 kids, and does well. Will lose some  itemized deduction and $32,400 in exemptions.                                         -Grandma in the nursing home or the family who pays those huge bills for Granny. No deduction under the house plan, maybe under the Senate plan.  Costs for that can exceed 10k a month easy.                                   Winners .                                                    -Folks with below average incomes who don't itemize.                               -Public Companies

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I fall into the "below average" category but to be totally honest I'd say that my family lives quite well.  We have all we need. Nice enough house and 10 acres of land, have some pretty nice things, and although we might have to wait awhile to afford the more expensive things in life we truly don't "want" for anything.  

When I hear someone who makes 150k/yr. cry about how bad they have it..... I simply cannot relate.   I live quite happily on a little more than 1/3 of that.

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Run your numbers and see how it works for you. There are winners and losers with this one. No Crying, No Complaining, No Opinion Expressed. Just a heads up.                                                  BTW, 529's are worth looking into for the girl's Mitch. 6% MO tax break on contributions, and tax deferred is nice. 

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From what I've read about 75% of people will pay less in tax, which means they will see more on their checks.  But they won't be able to deduct as much on their returns in the spring.

Businesses will be the ones that come out on top with this tax bill.

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7 hours ago, Gavin said:

    BTW, 529's are worth looking into for the girl's Mitch. 6% MO tax break on contributions, and tax deferred is nice. 

I’ve been doing them since the day they were born. At first I thought were a little inflexible...now I think they’ve loosened up a little

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529 plans are similar to a non-deductible IRA that is Missouri State tax advantaged. Put money for your kids tuition,  get a Missouri state tax deduction, and it grows tax deferred. Any increase in value will be taxed if not used for qualified education expenses when funds are distributed, but if used for education the growth is all tax free. The maximum annual deduction is $8,000 if your single or $16,000 for married couple and you get a  6% MO tax benefit on your contributions (up to the maximum) in the year of contribution. That's a 6% ROR even if you put it in on Monday  and spend it on the beneficiary's tuition h check clears! 

Any 529 plan qualifies for the MO deduction, so you are not tied to Missouri MOST.

 

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