I have a joint return and itemized deductions just about equals the standard deduction of $24,000.00

[wethepeople]

so that when they lose the two (2) exemptions they are actually worse off than last year.  Is this correct?

[rbynaker · Accepted solution]

"Worse off" isn't necessarily the right conclusion.  In many of the cases I've looked at like this, even if the taxable income is higher than the prior year, the overall tax is lower because the rates dropped.  You should also consider the state income tax ramifications of choosing standard vs itemized in these borderline cases.

But yes, there are winners and losers of TCJA.

Rick

[IRonMaN]

Yup.

[TAXOH]

Yes.  I've had that happen with a single person also.

[Just-Lisa-Now-]

Had my first losers in on Saturday.   MFJ - 2 kids     Lost the 16K in exemptions and 4K to SALT  Then their withholdings were 1500 less for each of them.  Their big $7000 refund they get each year that they use for vacation was only $1500. 

I did explain that they already got $3000 of it in their paychecks through the year,  they understood, but were still sad.

[rbynaker]

When I was running projections last year a lot of my little old ladies in nursing homes were losers.  The nursing homes are already bleeding them dry, not sure why Uncle Sam had to pile on top.

Most of the ones w/kids get subsidized by the increased CTC but I have a few clients in the "hole" between CTC and AOTC that are getting hit (just as they're trying to figure out how to pay for college this year).