New Federal Tax Code

[MiddleGround]

Typically get returns from both Federal and State. This year, my Federal return was about the same as last year. My State however, went down dramatically!!! Like hundreds of dollars down!

 

[Erk]

I hear that if you take the new standard deduction on your Fed return, MD forces you to take their standard deduction on the state return.

Turbotax seemed to be programmed to enforce this, for what that's worth. I ended up filing itemized even though I got less back from the Feds that way, because I got more back from the state than I lost from the Feds.
Refunds with Standard Deduction : Feds X State Y
Refunds with Itemized Deductions: Feds X-300 State Y+800

Numbers notional. More refund than I normally get, ideally I owe both entities 20 dollars.

 

[Erk]

We both claim single and 0.. wonder if we can claim negative dependents.

I may be commenting on a humorous remark, but you can have additonal tax withheld on your W-4 form to get 'less than zero' dependents basically.

 

[Merlin]

Turbotax seemed to be programmed to enforce this, for what that's worth. I ended up filing itemized even though I got less back from the Feds that way, because I got more back from the state than I lost from the Feds.
Refunds with Standard Deduction : Feds X State Y
Refunds with Itemized Deductions: Feds X-300 State Y+800

Numbers notional. More refund than I normally get, ideally I owe both entities 20 dollars.

I did the same thing. Even though itemizing brought down my federal return, my state return greatly increased, and I gained ~$400 overall. Well worth trying both ways to see which works best for you.

 

[Kyle]

Total federal dropped 2k plus for me.

Thank you Donald!

 

[MiddleGround]

People do realize that MOST returns will go down this year simply because people paid less in taxes this year. Less taxes paid = less refund.

I just want to know how MD was able to capitalize on this and get more taxes, by far, than last year.