General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGot my new paycheck today with new withholding.
Last edited Thu Feb 1, 2018, 03:02 PM - Edit history (1)
My withholding went to $399.26 (weekly) from $466.50 . (paid weekly)
What a pittance. I get a whole $67, while billionaires get millions.
Thanks for the crumbs!
Loki Liesmith
(4,602 posts)Last edited Thu Feb 1, 2018, 02:04 PM - Edit history (2)
Some trickery going on.
yallerdawg
(16,104 posts)This new amount reducing your withholding just showed up?
Dragonfly64
(41 posts)because your withholding hasn't changed -- the tax rate tables have.
yallerdawg
(16,104 posts)And how sure should the employee be that enough is being withheld so there is no tax due next year?
Or the tax return remains as anticipated?
leftynyc
(26,060 posts)should be able to have all that for you.
B2G
(9,766 posts)Not just on your paycheck but when you file your returns.
It's the same reduction.
marylandblue
(12,344 posts)I read somewhere they deliberately reduced the witholding amount too much, so you get more now and pay later. So you need to estimate your tax now and if they aren't witholding enough, fill out a new w-4 including additional witholding. Most people won't bother with this but the bill won't be due until after the election. What a crock!
B2G
(9,766 posts)Withholding is based strictly on the tax tables. The same one used to calculate your taxes.
It's not padded. You can only effect the amount withheld based on the deductions stated in your W4.
marylandblue
(12,344 posts)If, for whatever reason you want them to withold more than your deductions allow.
B2G
(9,766 posts)But withholding amounts are not 'padded' by the government to trick you into getting a bigger pay check and paying more when you file, which is what you stated.
That is completely within your control with your W4 deductions.
marylandblue
(12,344 posts)And it may be true in my case. I got a huge bump in my take home pay, I was really surprised because it should not have been that much. Now I need go figure out if it's right or not.
yallerdawg
(16,104 posts)What I heard was it will come clear when the 2018 tax books come out. In 2019.
DeminPennswoods
(15,265 posts)You have to make sure to calculate your correct withholding if you were claiming more or fewer personal exemptions to cover for things like mortgage payments, investment income, etc. If you don't, you are either going to get a big refund or owe a lot and possibly have to pay a penalty on top as well.
fescuerescue
(4,448 posts)aidbo
(2,328 posts)Just a draft version.
https://www.irs.gov/pub/irs-dft/fw4p--dft.pdf
yallerdawg
(16,104 posts)I knew algebra would come in handy one day!
guillaumeb
(42,641 posts)you will be a multimillionaire too.
lapfog_1
(29,194 posts)we should be accurate with math.
Multi = >1
2,000,000 / 67 = 29,851 paychecks.
Assuming 52 weekly paychecks a year... 574 years.
guillaumeb
(42,641 posts)And, this tax cut is temporary.
davekriss
(4,616 posts)See, even if we calculate it precisely, this tax cut is absurd. It actually represents class theft, because to pay for the tax cuts for giant corporations, the owners of these corporations, the 0.1%, many other services will be cut or reduced. Including social security and medicare.
(When those special treasury bonds begin to be redeemed -- you know, the surplus we paid for starting 1983 -- that comes out of general revenue. Thus the coming tsunami of attacks on all things that benefit people other than the top 1%, including social security.)
lapfog_1
(29,194 posts)lapfog_1
(29,194 posts)but 574 years is both accurate AND has the value of being funny and sad at the same time.
imanamerican63
(13,750 posts)We see pennies added & all the while the record million dollars profits!
NCTraveler
(30,481 posts)That's real money. A pretty big deal. Calling it crumbs is a pretty poor strategy.
I understand a little better considering your WITHHOLDING alone was $466.50/week. I assume you mean Federal Withholding. Wow. Solid pay.
octoberlib
(14,971 posts)Medicaid to pay for it. Also in 2027 people who make less than 200,000 a year will see their taxes go up. Thisll be fixed by then , though.
NCTraveler
(30,481 posts)Along with the new CBO suggestion that the debt ceiling be increased sooner rather than later.
MichMary
(1,714 posts)Just sayin'.
lapfog_1
(29,194 posts)not crumbs to anyone... but the OP is also correct... not life-changing either.
I would be very careful with that $67 a week as I suspect the withholding calculation is possibly inaccurate and I would hate to owe money in April 2019.
The other things to think about is what will increase as a result of this tax cut. For example, if you live in one of the states with significant state and local taxes and you are used to deducting those taxes on your federal return, you might not even be getting any sort of tax break.
I'm going to guess but if my math isn't way off the OP makes around $80,000 a year. $3,474 is a 4% tax break. Certainly not millions, but not chump change.
Before we all get excited about that 3 or 4 percent tax break, remember what we are losing as a society ( education environment infrastructure social services etc )
Also remember that the government is having to BORROW more money ( yet to be determined how much but the LOW end is $1.5T ) just to fund the things they haven't cut AND they have more spending bills coming to increase military spending. That much borrowing will impact the cost of money for all of us, even those who don't borrow money because we buy things and the companies who make those things DO borrow money so the increased cost of money will factor into the prices we pay.
Economic modeling is very difficult. Monkeying around with tax policy and trade policy and we will see all kinds of unintended consequences.
LeftInTX
(25,150 posts)It means an increase of about 14%.
However, the OP is not specific enough.
A paycheck of $466 is equivalent to about $15/hour
The OP is too vague.
mindem
(1,580 posts)"withholding" was $466. If his withholding is that much he is making a pretty decent income.
LeftInTX
(25,150 posts)If this is the case, his withholding increased.
Then, he says his paycheck increased by $67.
The OP...is too, too vague
lapfog_1
(29,194 posts)Federal withholding went from $466 to $399 for a $67 a week increase in net pay.
Assuming a few standard deductions, etc... one can extrapolate ( and I said it was a guess ) to an annual salary of $80K ( assuming around a 30 percent marginal rate ). To really know we would have to know what he or she filed on the W-2.
WillowTree
(5,325 posts)If the withholding was increased, then the takehome would be less than before, not more.
lapfog_1
(29,194 posts)to $399... that is a DECREASE in withholding, not an increase.
That decrease resulted in a net pay increase of $67 a week... or $3484 a year.
NCTraveler
(30,481 posts)It's what we have to do. People lining up to call this amount of money "crumbs" isn't a winning proposition.
These crumbs will be disappearing over the years(if the crumbs aren't a part of something else as you have outlined), as the higher end cuts stay, and we will be straddled with the burden in the end anyway.
I really think the CBO statement is also an important tool for us.
https://www.cbo.gov/publication/53514
This can be put into a soundbite.
sarah FAILIN
(2,857 posts)I am considered "salary" so no overtime for me but only make in the 40 k area. Another 30 bucks a month is not worth selling out my kids future.
B2G
(9,766 posts)The new tables go into effect today, not 2 weeks ago.
sarah FAILIN
(2,857 posts)Also, I checked it by the dollars held back as tax from November and December till now. Since my salary is always the same, it's easy to see the difference.
B2G
(9,766 posts)sarah FAILIN
(2,857 posts)It said they were getting it implemented before the deadline and that this was our first check with it. I 'm sure they just got the numbers and ran with it. The deadline is a deadline, not a starting point from what I understood.
I got my first check day before yesterday so it doesn't seem like a big deal.
stopwastingmymoney
(2,041 posts)I ran a payroll on the 25th with new tables and was able to compare a few.
The 1200 paycheck had 37 less in wh and the 2600 check had 75 less
That said, wh tables are considerably simpler than your tax return and you may end up owing at tax time.
This happened with the 2003 tax cut
Dem_4_Life
(1,765 posts)That the new tax tables became effective on Jan. 11, 2018 so the difference that you will see on your next paycheck will also include the adjustment to the prior payroll dated Jan. 19.
My favorite part of the note also said:
Your Payroll and Human Resources partners cannot offer any tax advice but in the weeks ahead, the IRS will be providing more information to better understand and review the changes. You can visit their website throughout the year for helpful information and to access the new withholding tax calculator to help you determine what your withholding should be. They plan to release this by the end of February. The IRS website is www.irs.gov.
Either way mine went up by about $20.
lapfog_1
(29,194 posts)Or as someone stated during the tax debate... about enough to buy a Starbucks once a week.
Proud Liberal Dem
(24,396 posts)that money will evaporate quicker than you might think.
NCTraveler
(30,481 posts)Even under you thoughts it isn't crumbs.
"that money will evaporate quicker than you might think."
I made no argument to it's staying power. Simply pointed out that thousands a year is not chump change and that promoting it as such is a flawed argument.
I do think inflation is about to rise at a quicker rate. There are serious concerns over it right now. That alone is one of the reasons the market was negatively impacted earlier this week.
http://www.todayonline.com/world/fed-leaves-rates-unchanged-sees-inflation-firming
lapfog_1
(29,194 posts)is to push the inflation rate up even a point or two. And I expect that it will.
Could be a lot worse... suppose China decides that holding onto all that debt they hold in the form of US Tbills is simply not worth it anymore and they decide to dump it ( it wouldn't serve them to do that as they would lose 100s of billions ) HOWEVER as an "act of war" against the idiot in the White House, they could decide to lose the money. That would put us into a depression worse than the 1930s.
WillowTree
(5,325 posts)Think about it. If the withholding was increased by that amount, the paycheck would actually be $67 less than it was before which doesn't make any sense. I think it was just a slip.
NCTraveler
(30,481 posts)I should have paid enough attention to recognize that. It actually makes the thousands even more significant on a personal level than I had originally thought. Not that we/they won't be paying for it later. We all will be.
Thanks for pointing out the detail.
lapfog_1
(29,194 posts)"My withholding went from to $399.26 (weekly) from $466.50 . (paid weekly)"
so there is the "typo" in this line... "from to".
I read it as "My withholding went TO $399.26 (weekly) FROM $466.50 . (paid weekly)"
Deleted the "to" and added empahsis.
fescuerescue
(4,448 posts)And I edited out the extra "to" which confused everyone.
For privacy, I did not include take home pay, nor gross. Just how the Federal deduction changed.
DeminPennswoods
(15,265 posts)Old: 466
New: 399
Net: +67
sinkingfeeling
(51,438 posts)pension with the elimination of personal deduction and caps on local/property taxes.
NCTraveler
(30,481 posts)This tax law is and will be devastating. For all of us.
I would never refer to the additional thousand you have to pay as "crumbs". Yet over three times that much is being referenced as just that. This is real money and I'm sorry we are going to have to go through it together. We will keep fighting to change it.
DeminPennswoods
(15,265 posts)standard deduction. It's a net gain of about $2000. Unless your property taxes are over $10,000/yr, you can still deduct 100% of them if you itemize.
sinkingfeeling
(51,438 posts)when my itemized deductions exceed $18,000? So I lost the $4050 personal exemption and my state/local taxes are capped to $10,000.
DeminPennswoods
(15,265 posts)Just explaining what the new rules are for those who don't know.
Freethinker65
(10,001 posts)Yes, you will see some $ in your paycheck (decrease in tax withholding) if everything else from the last year stays the same (no increase in health insurance buy in premiums, etc.).
However, the "crumbs" comment comes from who gets the major share of the tax cut (or the cookie). And that would be the wealthiest that will be saving tens of thousands of dollars or more. That $$$ paid for a lot of social services, healthcare subsidies, infrastructure, military and security, environmental protection, public education, etc. that we all rely on. It will dramatically put a hole in the federal budget which will either lead to increased borrowing and spending (National debt which we all end up paying for) or more cuts in programs (especially social programs like social security, Medicare, and Medicaid).
When talking about "crumbs" please do not forget to talk about the "cookie".
There was a great cartoon about this a few years ago.
Iliyah
(25,111 posts)people will pay more taxes come 2019 taxes, except for the 1-2%ers and corporations.
WillowTree
(5,325 posts)Stuart G
(38,414 posts)karynnj
(59,498 posts)fescuerescue
(4,448 posts)The new withholding is the smaller number which has the effect of increasing take home by $67
karynnj
(59,498 posts)B2G
(9,766 posts)My understanding is they are effective today, but that would have been for time worked in January before the new tables went into effect.
octoberlib
(14,971 posts)gopiscrap
(23,726 posts)but deduct an extra 41.00 in additional health insurance premiums and an additional 9.08 in condo real estate tax per month and an extra 2.00 per month in condo insurance and an extra 7.50 in condo fees per month...so I made a whopping $5.32 per month
your condo taxes, insurance, fees, and health insurance would have gone up anyway, so you are still $64.82 ahead.
Don't understand why people are so upset about getting more of their own $$$ back. I cringed when I heard Speaker Pelosi refer to bonuses and bigger paychecks as "crumbs."
Skittles
(153,122 posts)Last edited Thu Feb 1, 2018, 09:43 PM - Edit history (2)
it's going to drive up debt and give repukes ammunition to destroy Social Security and Medicare
Windy City Charlie
(1,178 posts)That all of this is some sort of advanced payment on future taxes. Can't help but think this will all be coming back out of our pockets and thensome at some point in the future.
TeamPooka
(24,210 posts)Enjoy it while it last. Its temporary for youBut permanent for corporations
MichMary
(1,714 posts)raise taxes on individuals?? Whichever one does, loses BIG TIME in the following election.
TeamPooka
(24,210 posts)stevenelijah
(26 posts)If you could get a 15% return on that money you will have 1 million dollars in about 26 years...
LexVegas
(6,031 posts)obamanut2012
(26,047 posts)unblock
(52,126 posts)i recommend setting some of it aside for next april 15....
fescuerescue
(4,448 posts)If my liability doesn't go down by 15%. I'm going to be in deep doo doo at the end of the year.
sarah FAILIN
(2,857 posts)The whole thing is a joke.
Historic NY
(37,449 posts)parkerMcDavis
(58 posts)in the Democratic party absolutely praising Obama's $40 payroll tax cut during his first term. The right is putting this out front and center in the media.
Kaleva
(36,259 posts)That's $268 extra month. Would be nice to add that to my $1158 a month I get for SSDI.
It's funny what you very well off people here think of as crumbs.
MacKasey
(983 posts)Everyone got more money in their paychecks because the tax rate drops back to 10% January 1st, not because of the tax cuts unless you make $10,000 in a weak
When you hit $10,000 is when you will see a differ of 3%, tax is going down from 15% to 12%. If you do not make more then $38,000 that is all the tax break you will see
That's the way I understand it
demigoddess
(6,640 posts)of 25%, they eliminated all or most of the allowances, like for extra expensive housing areas and flight pay etc. The net result was a 6 dollar pay raise. Hallelujah! NOT! The taxable base pay rose but actual take home pay didn't change. The end result was that for some people (until the republicans discovered their mistake) the retirement pay went way up for some people. HA HA! I guess they might have learned from their mistake, but they are doing the same thing again.
Dreamer Tatum
(10,926 posts)It's not "crumbs." It's real money. There are probably several DUers who had gofundme's who would have been delighted with a little extra money in their checks.
Luciferous
(6,078 posts)after we factor in the increase in our insurance.
Autumn
(44,986 posts)for them and giving them their money back that the government has been stealing from them. And Fox and the pukes will never mention what that paltry 67 dollars is costing them and the country. The people I see that are so happy on FB have no clue that this is temporary and harming SS while the money the wealthy and corporations get are permanent.
burnbaby
(685 posts)you get an extra $134 a month. would you rather get $134 or owe $134 a month? if you would rather owe than i suggest you send $134 a month to your favorite charity
alarimer
(16,245 posts)This "windfall" is a small bribe for the election. But next year, when it no longer matters, people will owe.
I'm going to have more withheld from my check, just in case.
Skittles
(153,122 posts)titaniumsalute
(4,742 posts)While that isn't too bad I guess I need to ask how you file? Did you also lose deductions when you file for 2018?
fescuerescue
(4,448 posts)I have no idea what 2018 will look like
Gothmog
(144,945 posts)My son is an associate at a major firm and the new withholding tables would have resulted in him owing taxes at the end of the year.
fescuerescue
(4,448 posts)I'm just referring to the withholding on my own check.
When I get some time, I'm going to build a model that shows what my year end tax will looking like after incorporating all the new changes and rates. Unfortunately, Ive yet to find an unbiased accurate model (the current ones ive seen, over simplify or omit items to push their particular narrative).
Kirk Lover
(3,608 posts)moondust
(19,963 posts)Food prices are also up quite a bit.
And health insurance.
And...