Running with JCT, Part Deux

The new tax rates will begin on payroll beginning February...the current year 17 filing in 18 will not change...just the payroll beginning '18 for filing in '19...

 

Man the more I look at this thing the more I realize it's going to hurt next tax season...

The loss of the personal exemption exposes $20,000 roughly of my income to the tax rate because I have 5 exemptions.

The loss of per diem if I run the same I did this year exposes over 17,000.

So even with the doubled standard deduction I'm still going to see taxes hit on over $25,000 more of my income in 2018 that I am in 2017. At the 12% tax bracket that's $3,000 additional in income taxes right there. Not including additional Social Security and Medicare contributions.



The child tax credit will offset some of the bill but it doesn't off-set taxable income.

I really hope I'm doing my numbers wrong and I'm grossly overestimated... Or just plain wrong...

 

You should be taking your per diem on schedule C, which shouldn't be affected. It's disappearing on the itemized Sefton of the 1040 form. Wouldn't affect us as business owners, but will company drivers

 

That's what @drvrtech77 was saying. My question would will the actual Per diem rates as they are NOW be schedule C'ed or will it just be actual itemized expenses now.

Either way, even with Per Diem still in the picture as it is now, I'm going to see an increased tax liability in 2018 vs 2017. Gotta plan for worst case scenarios.

 

I'm assuming 3 of your 5 personal exemptions are kids.

The child tax credits will more than make up for loss of the exemptions. More likely you'll come close to doubling what your savings were with the exemption.

 

It Will always be on schedule as its related to the business. Itemized section is for personal use.
The IRS could completely eliminate all itemized items and it won't affect a schedule c. That is until they start messing with that in the future.

 

@Kamkor

 

Might have been asked before, but does anyone have the variable lease page in an excel file that they could email me? Something that I could play with the rates with.

 

Is this what you're looking for?

JCT Variable Lease

It hasn't been updated in a long time. Current fuel surcharge is 27 cents and a national average of $2.90

 

Well, that was interesting. I'm parked at the Stripes in Lampasas, Tx. I get up to get start getting ready to roll to Temple for delivery. I go inside and this dude doesn't remember where he is at, who he is, where he lives, or where his pickup truck is. The girls that work here don't know what to do and try to help him. The help find his truck. I tell them that they need to call the authorities cause they will know what to do. So, one girl calls while the other tries to delay him as long as possible and gets the license plate number.

The guy ends up driving off anyway on the wrong side of the road. Bout a minute later, 3 local PD cruisers go flying by to catch up to the guy.

Hopefully they are able to help the guy.