tax reform
Good Morning Ms Savage, I checked the IRS withholding calculator, based on your recent column in the Chicago Tribune, and I plugged in my numbers from last year. Guess what? My taxes are going up! Maybe you could run some scenarios and print the results in another column. I would be happy to share my particulars with you if you'd like. The basics are: married filing jointly, income $107,000, no defendants, itemized under $24,000. We had extraordinary medical expenses and even when I added these, exceeding the $24,000, my taxes still went up about $200.
Terry Says
You're not alone! Many people (including me) will find taxes rising because they live in states with high taxes -- or because they have more than $10,000 in combined income and real estate taxes. Since only $10,000 can be deducted per return, even with a higher standard deduction, taxes paid will go up! Also, a reminder to double check the withholding calculations on this IRS calculator -- especially if you are paid bi-weekly. Several readers have reported to me that the calculator isn't working properly in that scenario.
