Quote:
Originally Posted by redpoint5
I'm looking at a penalty at the moment, though I don't know how considering I never have been in that situation before and if anything, having a kid should have reduced my tax liability further. My plan is to make 2019 IRA contributions now to lower my liability and get out of penalty territory.
The only thing I can think that would explain my increased tax liability is perhaps the Trump tax plan increasing taxes on upper-middle incomes.
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Two things that burned us:
1. The reduced the withholding tables again so companies withhold less in income taxes during the year.
2. SALT deductions (State And Local Deductions) were capped at $10,000 which screws over people that live in states with high local taxes to fund local and state government. My wife and I easily exceed $10K in State income taxes alone before we even look at property and other local taxes.
Trump's "tax cut" cost us a few thousand in extra federal income taxes.