If you are using the Qualified Dividends schedule

[question everything]

to calculate your tax, pay attention. Line 8 has a higher value than last year: 77200 vs. 75900 if married filing jointly. Made a major difference in our tax.

I just had to modify my spreadsheets that have served me well for many years. I worked on Form 1040 and Sch. 1 and the SS worksheet and the Qualified Dividends and I thought I was going out of my mind. I thought I had everything there.

For now.

[progree]

1. Long term capital gains too are treated the same way, subject to the same thresholds

0% rate up to $77,200 for Marrieds Filing Jointly (MFJ), the 15%. Pretty sure the dollar threshold is half that amount for singles.

Used to be tied to the top of the ordinary 15% tax bracket (i.e. 0% LTCG and qualified dividend rate for those in the 10% and 15% ordinary tax brackets, then 15% (20% for very high income). Now it isn't coincident with the top of the 15% (now 12%) ordinary tax bracket, which tops out at $77,400, rather than $77,200 for MFJ.

Very fucking strange. At least that's what I'm reading the AAII Journal guide to 2018 and 2019 taxes (December issue) -- they make mistakes sometimes.

We will all be out of our minds before this is all over with.

[rickford66]

2. You guys ever hear of Turbotax ?

[progree]

3. I will be using it for the first time this year. For the past 35 years I used a tax preparer

Last edited Wed Jan 30, 2019, 01:46 AM - Edit history (1)

but in the past 2 years I don't think he's performing at the level he needs to be performing at. Too many errors among other problems.

For me, its important to understand taxes enough to do tax planning and to know the potential tax ramifications of things I'm considering doing.

I'm nervous about using Turbo Tax -- besides being the first time for me, there will likely be plenty of bugs with all the tax law changes.

[Croney]

5. Love TurboTax, I think it cheats in our favor in secret ways, lol.

Probably not, but we filed yesterday and were pleasantly surprised. It's like Judge Judy, who says, "You'll never know where I'm going, so don't try to guess, just answer the questions."

[question everything]

6. Of course. Have been using it for years

But I always have everything ready so I understand the final results. I do not blindly trust anyone - preparer or a software.

Some 30 years ago we used a preparer. I would actually bring him the forms already filled for him to check and modify and add - if needed. He used to laugh, asking whether he should just plug my numbers.

Yes, I know. Many bring bags and boxes full of receipts.

[PoindexterOglethorpe]

4. I use an accountant.

I'm sure I pay more money than some people, but it's well worth it.