Archive for December 11th, 2017

Reality Check: How much will YOUR income taxes go down (or up)?

December 11, 2017

Here’s a simple online  calculator that rudely awakened me.


My son who admonished me to “stop calling it a tax cut until you run your numbers” … I finally did run my numbers.

For me — a discounted-rate college prof – my Federal income taxes will go up about 30%.

Whoa, Nelly.

What’s going on?

The key drivers: (1) loss of personal exemptions ($4,050 times 2)  (2) non-deductibility of state income taxes (Virginia has turned purple with a Dem governor) and (3) loss of 1/3 of my local real estate taxes (assuming the House version that still allows $10,000).

The alleged reduction in rates doesn’t offset those deductions lost.



If you want to see what the likely impact will be on you, pull out the first couple of pages of your 2016 tax return so you can plug a few numbers into the CALCXML online tax calculator.

Here’s an example for a family of 4 – husband, wife, 2 kids under 18 … filing jointly … $150,000 combined income … no “unearned investment income” (dividends & capital gains which get taxed at a preferential rate) … $500,000 mortgage @ 4% …. $5,000 local real estate taxes .

click for CalcXM’s online tax calculator


And, the answer is …