Airlines Giving Employees Tax Cut Bonuses

milleR said:
I read that as "a $1000 check from my employer doesn't come close to sweetening the taste of the crap sandwich that is this tax bill being forced down my throat" but I could be completely off.
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Again, irrelevant though. The tax plan is a government thing, the airlines didn’t change our tax code. The tax plan has passed and is now reality. So option 1, new tax plan and no free money. Or option 2, new tax plan and a free $1000 payout.

I’ll take option 2.



On a side note, this tax plan is most likely going to help most people. For making about $148k for 2016, I squeezed out about 18,500 in deductions. I got a federal refund of $23. Now by doubling the standard deduction to 25k for married filing jointly couples, and tax credit of $2k per child, that doesn’t phase out until 400k for married joint couples, this is gonna help big time. I haven’t yet run the numbers on what it would look like when I take the upgrade and go on the CA rate, but in my particular situation I think I’ll still come out ahead with the new tax plan versus old.
 
Cherokee_Cruiser said:
Again, irrelevant though. The tax plan is a government thing, the airlines didn’t change our tax code. The tax plan has passed and is now reality. So option 1, new tax plan and no free money. Or option 2, new tax plan and a free $1000 payout.

I’ll take option 2.



On a side note, this tax plan is most likely going to help most people. For making about $148k for 2016, I squeezed out about 18,500 in deductions. I got a federal refund of $23. Now by doubling the standard deduction to 25k for married filing jointly couples, and tax credit of $2k per child, that doesn’t phase out until 400k for married joint couples, this is gonna help big time. I haven’t yet run the numbers on what it would look like when I take the upgrade and go on the CA rate, but in my particular situation I think I’ll still come out ahead with the new tax plan versus old.
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10k property tax cap. Enough said .....
 
L-16B said:
10k property tax cap. Enough said .....
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Guess I luck out, at $6800/yr. Maybe this will change American Home buying behavior. No shortage of people buying big homes they probably shouldn’t and can’t really afford long term, just because they can get the tax write off benefits. Though to be fair, some people just live in a very expensive area and have no choice but to pay high property taxes. So I do get it, this change is gonna sting. $25k standard deduction is still a big amount. Hopefully it works out for most people.
 
wheelsup said:
$7k a year in property tax on a middle class home is criminal, plus you're paying income tax on top of that. Absolutely insane.

Home prices and taxes in general need a huge reset all over the country but especially in the NE and west coast.
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It’s all relevant. In Texas we don’t have state income tax but property taxes will get ya. I figure 3% every year of the value of the house for taxes and insurance.
 
Cherokee_Cruiser said:
Guess I luck out, at $6800/yr. Maybe this will change American Home buying behavior. No shortage of people buying big homes they probably shouldn’t and can’t really afford long term, just because they can get the tax write off benefits. Though to be fair, some people just live in a very expensive area and have no choice but to pay high property taxes. So I do get it, this change is gonna sting. $25k standard deduction is still a big amount. Hopefully it works out for most people.
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I agree with that but for me it’s rent houses. Have mid 20k in property taxes combined.
 
@Cherokee_Cruiser

I guess that $1000 didn’t really buy what management wanted.

But, we gave you “free” money!

“Interviews with 10 Alaska employees, including pilots, flight attendants and maintenance staff, along with internal company documents obtained by The Seattle Times, reveal a high level of worry about the airline’s direction — concern unlikely to be much eased by the $1,000 employee bonus announced Thursday evening as a result of the corporate tax windfall delivered by President Donald Trump.”
 
www.taxplancalculator.com

Play with the numbers before assuming the new tax plan hurts you. At 150k/yr standard deduction single I save nearly 300/m after tax dollars. You might owe more if you're making 200+ single huge mortgage in high tax state. MOST people will save money.
 
Cptnchia said:
It’s not worth it for me to get all giddy about it. It’s only 1 large. I can make more just picking up a day turn. Come Feb, I’ll do the Futterwacken when they hand me a bonus check for $50K
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Damn, I apparently chose the wrong side of the fence. Well done!
 
ATN_Pilot said:
Property taxes on investment properties are a legit business expense, so the new tax rules don’t screw you there. It’s just for taxes on your home.

But yeah, put your properties into an LLC. Not for tax reasons, but for liability protection.
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I’ve been told that the great republic of Tejas Is a right to work state and it’s not as risky as California or New York to have them yourself instead of an LLC. I’ve always carried umbrella policies instead but I’m looking into it right now with my personal assistant @amorris311
 
ATN_Pilot said:
Property taxes on investment properties are a legit business expense, so the new tax rules don’t screw you there. It’s just for taxes on your home.

But yeah, put your properties into an LLC. Not for tax reasons, but for liability protection.
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Have you had experience with rolling a property with a mortgage into an LLC? I’ve heard horror stories about the holder exercising the alienation clause and don’t want to refinance again just to get one into an LLC.
 
L-16B said:
It’s all relevant. In Texas we don’t have state income tax but property taxes will get ya. I figure 3% every year of the value of the house for taxes and insurance.
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Thank you for this. I can't tell you how many Texans chided me for living in a state with income tax when, in fact, their tax liability was exhaustively more than Arizona.

"But we don't have a state tax!"

"Whatever Hoss, and your hat looks stupid".
 
Cherokee_Cruiser said:
Guess I luck out, at $6800/yr. Maybe this will change American Home buying behavior. No shortage of people buying big homes they probably shouldn’t and can’t really afford long term, just because they can get the tax write off benefits. Though to be fair, some people just live in a very expensive area and have no choice but to pay high property taxes. So I do get it, this change is gonna sting. $25k standard deduction is still a big amount. Hopefully it works out for most people.
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6800 a year in NJ... what are you in a 2br townhouse?
My parents live on a farm there and are still going to end up on the turd end of the stick
 
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