Ask Terry Questions tax reform

tax reform

By Terry Savage on March 20, 2018 | Taxes & Economy

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.



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