Quote:
Originally Posted by kingfin66
I think most of us here at PA understand that Chad, but for the masses there is a psychological effect of receiving a tax return. Think of Christmas Vacation and how Clark Griswold was anticipating is yearly bonus so that he could install a swimming pool. When the boss cancelled it without telling anybody, he was pissed. This is what is effectively happening with tax refunds; people like that year end bonus, never mind that it really amounted to an interest-free loan to the IRS.
It is going to be easy for the Democrats to use semantics and word play to describe how people got screwed by the tax reform bill. The lesson for me is that I am going to need to revisit my withholding to ensure that I finish break even at the end of the year. I thought that increasing my 457(b) plan would be enough of an offset, but in the end, it was cap on the SALT deduction that got me. Live and learn.
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Wouldn't increasing your 457(b) also decrease your withholding? The withholding tables are based on taxable wages and not gross wages.
