GOP Tax Reform Hurts Low-Income Single Seniors

[KingsX]

*

" Asked about seniors paying more in taxes, Sen. Rob Portman, an Ohio Republican
on the Senate Finance Committee, said he would want to look into it because
"that's certainly not the intent" of tax reform. "The intent is to be more generous."

http://www.cleveland.com/nation/inde...orm_could.html


If single seniors are hurt by the GOP's tax cut plan, it's scary lawmakers aren't aware.

Seniors [and the blind] get an extra standard deduction plus the regular standard deduction
and a personal exemption. The GOP plan [which is almost exactly the same as their June 2016
" Blueprint"] eliminates both the extra senior standard deduction and personal exemptions.

This year [2017] a single senior gets a total of $11,950 tax exempt [$6350 + $4050 + $1550.]
Trade that for a lumped $12,000 and the single senior gets $50 until he has to pay the increased
12% tax rate. The projected increases in all three for next year totals $12,250.00... so the GOP's
$12,000 is less. This brings up another question. Why $12,000 ? Why not double the standard
deduction which usually will increase each year due to inflation and is projected to increase to
$6500 next year [double $6500 is $13,000.] Will the GOP's $12,000 be tied to inflation ??

Seniors on Social Security have received very little cost of living raises the past several years...
low income seniors can't afford to take a hit from "tax reform."

[Hoppalong]

Single seniors on SS that are below what is it 16k Or $16,500 what ever that amount is, Do Not Even File Taxes. I have not file ANY income taxes State OR Federal ever since I went on SS. LOL
What is your method saying what AGE a senior is? Are not most of them on SS? And ONLY living on that amount, I mean after all Low Income Seniors are making it through on less then 16K what and how will this affect any of them if they don't ANY file taxes in the First place? The once you then claim is Xero if SS is ALL the income. And that is a whole lot of POOR and Low Income Seniors...

[KingsX]

Single seniors on SS that are below what is it 16k Or $16,500 what ever that amount is, Do Not Even File Taxes. I have not file ANY income taxes State OR Federal ever since I went on SS. LOL
What is your method saying what AGE a senior is? Are not most of them on SS? And ONLY living on that amount, I mean after all Low Income Seniors are making it through on less then 16K what and how will this affect any of them if they don't ANY file taxes in the First place?

There is more information about this in the article I linked. But I am also a senior and familiar with this.

Many seniors on Social Security also have other taxable income... pensions, traditional IRA withdrawals, part-time jobs, etc...

The $11,950 I referenced in my topic post is taxable income. In 2017 the first $11,950 of taxable income [standard deduction plus over 65 extra standard deduction plus one personal exemption] for a single senior over 65 is tax exempt. This year if an over 65 single senior's taxable income is less than $11,950 [the tax exempt amount] he does not have to file a tax return. That amount usually increases every year due to inflation. In 2018 [if tax laws do not change] the projected amount is $12,250.00.

But the GOP has proposed eliminating the extra over 65 senior deduction and the personal exemption, rolling them all into one arbitrary amount for ALL singles, $12,000 [which is NOT double the 2017 single $6350 standard deduction.] Even if GOP tax reform passes, it might not happen until next year when the basic projected standard deduction for ALL singles will be $6500 [double that would be $13,000.] Will the GOP single standard deduction still be the arbitrary $12,000 ? Will that arbitrary $12,000 increase with inflation ? The devil is in the details.

[somoprepper08]

They intend to get MORE taxes each year no matter what they are telling folks. Everyone will be screwed in the end.

[KingsX]

.


Here is a problem... most people today use professional tax experts and/or similar internet programs to do their annual income taxes. I bet most of those who are now touting the GOP's "tax reform" have no personal clue how to figure their own taxes much less how it might affect different demographic groups. A White House spokesman basically said they can't promise no one will be hurt. They can't promise because they have no clue. The blind are leading the blind... and ironically, in their blindness, they have eliminated the extra standard deduction for the blind.

Btw... I have always personally and manually done by own taxes. Granted I have always been lower middle class and my taxes are simple. But it educated me and kept me informed of IRS procedures, rules and changes. I've learned enough to know that with tax reform like everything else in life, it's best not to buy a pig in a poke.

[Hoppalong]

I have NEVER ever in my life done my own taxes. Never wanted to either. And the only thing I file now is Wi. Homestead Tax Credit where I get a portion of what I pay in rent back, it is nice to get around 700 bucks from the State of Wi. LOL And for people that do their own at home most use the SAME software that tax preparer do. And they STILL pay each year for the updates as well. So those updates to do that at home with those Tax Download ones were still about the same as I was paying when going to a tax preparer when I was filing both State and Federal forms.. LOL
And YES I even have a tax preparer to do this Homestead Credit deal also. 30 bucks minus the 700+ I get back, seems like a no brainer to me. LOL

[somoprepper08]

I have NEVER ever in my life done my own taxes. Never wanted to either. And the only thing I file now is Wi. Homestead Tax Credit where I get a portion of what I pay in rent back, it is nice to get around 700 bucks from the State of Wi. LOL And for people that do their own at home most use the SAME software that tax preparer do. And they STILL pay each year for the updates as well. So those updates to do that at home with those Tax Download ones were still about the same as I was paying when going to a tax preparer when I was filing both State and Federal forms.. LOL
And YES I even have a tax preparer to do this Homestead Credit deal also. 30 bucks minus the 700+ I get back, seems like a no brainer to me. LOL

LOL LOL LOL LOL

You don't have to use ANY software if you can get the actual paper forms to fill out and send in.

LOL LOL LOL LOL LOL LOL

[Hoppalong]

That is sooooo horse and buggy thinking. Get with modern times.

[KingsX]

.


'An orange swan that won't stop tweeting'


This has been my take... the market has rallied to the moon because Trump has promised the sky.
If his tax abomination is not passed, the market may crash.



David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge

[...]

" Stockman argued that President Donald Trump's business-friendly tax reform bill, which was unveiled Wednesday, won't prevent a damaging sell-off. He previously said Wall Street is "delusional" for believing it will even be passed.

"This is a fiscal disaster that when they [Wall Street] begin to look at it, they'll see it's not even remotely paid for. This bill will go down for the count," said Stockman."

more at link

https://www.cnbc.com/2017/09/29/davi...0-percent.html

[Davy Crockett]

Stockman has been singing this song for a few years.
Along with a lot of others.

I suspect they'll be correct, at some point, due to the cyclical nature of things

I didn't think I'd see the day where I'd say Hoppy was correct about anything.
But, even a broken clock is right twice a day.

Under current law, Social Security is non-taxable.
At least if you have no other income.

Last year a portion of my SS was taxable because I worked part time (less than the max I was allowed to earn before they started taking some back) and my wife is still working.