Even if I’m at the top bracket, the marginal rate is ~39%, so the most a $100 deduction can save me is $39.

Great question. I don't know and I said it was almost dollar for dollar. I think once you hit a certain threshold it goes almost 1 for 1. Just check it in April. I am happy to admit if I was wrong. I will do the same.

Posted by bad_luck on 1/8/2018 7:31:00 PM (view original):
Even if I’m at the top bracket, the marginal rate is ~39%, so the most a $100 deduction can save me is $39.

What do you do for work? Dodgy

The 100 dollars isn't a credit...it's a deduction and only reduces your taxable income by 100 bucks. If it brings you back into another bracket you may see some kind of savings, 30 bucks maybe?

I know. Same with the excise tax. Both deductions and can only be used if you itemize.

Posted by cccp1014 on 1/8/2018 7:33:00 PM (view original):
Great question. I don't know and I said it was almost dollar for dollar. I think once you hit a certain threshold it goes almost 1 for 1. Just check it in April. I am happy to admit if I was wrong. I will do the same.

Wtf?????

Only tax credits reduce your actual tax liability 1 for 1. Deductions reduce taxable income. SALT is a deduction.

This does not require expertise. Anyone working in finance should understand it.

Right. Pretty much going the way of the dodo with the new tax system. Sucks big time if you have 2-3 kids.

Posted by The Taint on 1/8/2018 7:34:00 PM (view original):
The 100 dollars isn't a credit...it's a deduction and only reduces your taxable income by 100 bucks. If it brings you back into another bracket you may see some kind of savings, 30 bucks maybe?

I admittedly could be confusing something. The only time I do taxes is when I do my own and they are fairly easy using online software, especially when they download your W2 automatically, etc. I will say again, I am NOT a tax expert. Our tax code is fairly extensive and that is why we have CPAs.

Posted by The Taint on 1/8/2018 7:34:00 PM (view original):
The 100 dollars isn't a credit...it's a deduction and only reduces your taxable income by 100 bucks. If it brings you back into another bracket you may see some kind of savings, 30 bucks maybe?

He actually doesn’t understand the difference. This is ******* amazing.

Posted by bad_luck on 1/8/2018 7:36:00 PM (view original):

Posted by cccp1014 on 1/8/2018 7:33:00 PM (view original):
Great question. I don't know and I said it was almost dollar for dollar. I think once you hit a certain threshold it goes almost 1 for 1. Just check it in April. I am happy to admit if I was wrong. I will do the same.

Wtf?????

Only tax credits reduce your actual tax liability 1 for 1. Deductions reduce taxable income. SALT is a deduction.

This does not require expertise. Anyone working in finance should understand it.

It's pretty basic.

Posted by bad_luck on 1/8/2018 7:37:00 PM (view original):

Posted by The Taint on 1/8/2018 7:34:00 PM (view original):
The 100 dollars isn't a credit...it's a deduction and only reduces your taxable income by 100 bucks. If it brings you back into another bracket you may see some kind of savings, 30 bucks maybe?

He actually doesn’t understand the difference. This is ******* amazing.

It definitely shoots any kind of "financial whiz" claim in the foot.

Posted by The Taint on 1/8/2018 7:36:00 PM (view original):
Right. Pretty much going the way of the dodo with the new tax system. Sucks big time if you have 2-3 kids.

I will lose out on $16k in deductions if the final product is as advertised. I will gain a little in credits and pay a lower rate but in the end I will be paying more because of the $10k cap on top of it. It may be better to do the standard vs. itemize when I do them in 2019. My question is for those that pay quarterly taxes, how much do they pay. CPAs will make a killing figuring this out.

Posted by The Taint on 1/8/2018 7:37:00 PM (view original):

Posted by bad_luck on 1/8/2018 7:37:00 PM (view original):

Posted by The Taint on 1/8/2018 7:34:00 PM (view original):
The 100 dollars isn't a credit...it's a deduction and only reduces your taxable income by 100 bucks. If it brings you back into another bracket you may see some kind of savings, 30 bucks maybe?

He actually doesn’t understand the difference. This is ******* amazing.

It definitely shoots any kind of "financial whiz" claim in the foot.

I get the delta and yes it should not be 1 for 1. I may be mistaken it may be 30 cents per $1. I have admitted this 100x. LOL

I am far from perfect. What do you guys do for work?

Posted by The Taint on 1/8/2018 7:37:00 PM (view original):

Posted by bad_luck on 1/8/2018 7:36:00 PM (view original):

Posted by cccp1014 on 1/8/2018 7:33:00 PM (view original):
Great question. I don't know and I said it was almost dollar for dollar. I think once you hit a certain threshold it goes almost 1 for 1. Just check it in April. I am happy to admit if I was wrong. I will do the same.

Wtf?????

Only tax credits reduce your actual tax liability 1 for 1. Deductions reduce taxable income. SALT is a deduction.

This does not require expertise. Anyone working in finance should understand it.

It's pretty basic.

Why would someone doing M&A deals need to be a tax expert? Please explain

Posted by cccp1014 on 1/8/2018 7:39:00 PM (view original):

Posted by The Taint on 1/8/2018 7:37:00 PM (view original):

Posted by bad_luck on 1/8/2018 7:37:00 PM (view original):

Posted by The Taint on 1/8/2018 7:34:00 PM (view original):
The 100 dollars isn't a credit...it's a deduction and only reduces your taxable income by 100 bucks. If it brings you back into another bracket you may see some kind of savings, 30 bucks maybe?

He actually doesn’t understand the difference. This is ******* amazing.

It definitely shoots any kind of "financial whiz" claim in the foot.

I get the delta and yes it should not be 1 for 1. I may be mistaken it may be 30 cents per $1. I have admitted this 100x. LOL

I am far from perfect. What do you guys do for work?

I lay pipe.