TAX changes for us?

doesn’t that mean the maximum you can get back is 12k? My interpretation was if your annual gross income is less than 150k you can deduct up to 12,500 in federal tax. I was hoping for about a 6k refund this year

 

No, it just adds an additional $12,500 on top of the standard $15,750 deduction is my understanding, so you could in theory deduct $27,250 from your gross income and the remaining amount would be taxed at whatever tax bracket it falls into.

Sounds like your withholding amount needs to be adjusted on your W4 if youre expecting 6k of a refund. Unless of course you want the government to hold on to that 6k for a year with zero interest vs investing that and getting a return on it.

 

well no I’m not expecting 6k now! This is bad news. I always have to pay in a couple hundred bucks, but 40% of my income is OT and i gross around 130k so I was expecting to save 6k in taxes…….but I guess not. Better start saving for my Peru trip in February. Was hoping to pay for it with tax refund

 

Well maybe you’ll still get at least something, instead of paying this year.

 

If your income is 130k the OT exemption of 12.5k would save you about $2500 in taxes based on my calculations. You'd drop the from the 24% bracket to the 22% bracket.

 

Okay thanks. I don’t wanna turn thread political, but now I see why all the opponents of the bill were saying it only helps the wealthy and not the regular people. Until now I was thinking it was helping me a lot, but I guess not. Im sorry but you can’t say we’re “gonna let the hardest workers in this country keep their OT” while saving me a whopping $2500 on roughly 1000 hours of work per year based on 20 hours a week/50 weeks a year

 

To be clear im still doubtful this is even going to be applicable to us drivers. That being said yeah could've been better but also must be nice to consider $2,500 chump change. Thats a very good vacation for my entire family.

 

It’s not chump change, but it’s not even close to no tax on OT is all I’m saying. Means over 2/3rds of my OT is still taxed

but yea I hadn’t really started counting my chickens yet either. Technically I get OT after 40, but I fully expect the government to say my company chooses to pay me OT out of the kindness of their heart. but being they don’t have to by law it doesn’t apply to me, but we”ll see

 

True, im in the same boat as far as OT after 40, so agreed, we'll see next year I guess.

 

Most drivers are non English speaking anyway, to organize a strike we'd have to speak one common language first....