Last year everyone was so flustered, excited, taken back, so in love with the 2017 Trump Tax Break for the “middle class”. (Really???? 3% is all it takes to get you excited?????). I quickly criticized it for what is blatantly was, a tax cut for the mega rich that was to be paid for by the middle class. I further pointed out the great tax break you were getting would slowly disappear after 5 years. Well, I’ll be the first to admit it when I’m wrong. You see it won’t disappear after 5 years. IT DISAPPEARED THIS YEAR. Essentially, you were tricked by a scam artist whose only interest is in himself and his mega rich family and friends. Already, millions are taking to social media blaming Trump and the GOP. Most use the GOPTaxScam hash tag. You got screwed in that you didn’t realize a tax cut has nothing to do with your tax liability on your return. In fact, your LIABILITY WENT UP !!!
That’s right, already hundreds millions of middle class tax payers OWE MORE THIS YEAR (or, in some cases, are getting significantly less back). The IRS is reporting for 2019 the average tax refund check is down 8 percent ($170) this year versus last. The number of people receiving a refund has dropped by 25%!!!!! How can that be???? You were supposed to get a break in the taxes applied to your pay check and you were supposed to get a higher standard deduction on your actual tax return calculations.
The most significant changes to the U.S. tax code in decades created lower tax brackets and higher standard deductions. However, it took away personal exemptions and limited the amount middle class taxpayers could deduct for real estate taxes and state and local taxes. More or less a break even calculation. Essentially, you got screwed.
Here are the 9 most popular deductions you can no longer take (that is, you got screwed).
- Personal exemptions.
- Home equity interest
- Moving expenses
- Job expenses
- Tax preparation fees
- IRA account fees – wow, if you ever got screwed, it’s on this one!!
- Parking and transit reimbursements
- Casualty and Theft losses
- Certain college donations
So, let’s review.
- If your standard deduction went up, great. But, if you then lost one of your write offs (this year you can no longer write off a home office if you work for someone else, and next year you can no longer write off medical expenses) then, you essentially got screwed.
- If your pay check was a little higher (the average is $24) because less taxes were taken out, then great. However, the combination of larger paychecks and smaller deductions are leaving some middle class taxpayers that usually get a refund owing hundreds — even thousands — of dollars on April 15, 2019. If you were then told “you forgot to file a new W4 and have additional amounts taken out”, then, you essentially got screwed.
- The Government Accounting Office is reporting 4.6 MILLION fewer people will receive a refund. That means 4.6 million people GOT SCREWED.