A week or so ago, we had a thread about the impact of the new tax law on individuals and admittedly, I was in a world of confusion how it was going to impact me. Now, I'm no longer confused. What I feared is indeed true and I'm guessing it will also impact others in a similar manner.
During the past 2o years, my federal effective tax rate has fluctuated from 8.5% to 11%. 2017, it was 9.8%. I estimated withholding where it should have shaken out around 10.9%. My estimated taxes is going to be around 14.3%. That is a pretty significant tax increase and my income from 2017 to 2018 is relatively flat so the only thing that changed is the tax law.
If you are in the upper middle class and married file jointly with more than the average of 1.5 children, expect the same kind of effect.
During the past 2o years, my federal effective tax rate has fluctuated from 8.5% to 11%. 2017, it was 9.8%. I estimated withholding where it should have shaken out around 10.9%. My estimated taxes is going to be around 14.3%. That is a pretty significant tax increase and my income from 2017 to 2018 is relatively flat so the only thing that changed is the tax law.
If you are in the upper middle class and married file jointly with more than the average of 1.5 children, expect the same kind of effect.