Anonymous User wrote: Johann wrote: Anonymous User wrote: Johann wrote: Anonymous User wrote:
Junior big law partner in NYC. This shows my taxes going up by about $1,000 per month.
yeah you single? if so checks out.
No. Married with three kids.
oh yeah, personal exemption limitations for the kids and the new income brackets for those dollars between 200k-415k got you.
Yes, I own my apartment. No idea what it's attributable to. If I play with that calculator, it actually shows $200k-415k as good dollars for me. At $415k I would be just about breaking even. All the loss is between $450k-550k.
It's all about SALT deductions. Losing SALT deductions hurts you for the entire income range but gets worse the higher your income is, and there are countervailing factors helping you lower down (in particular, the closing of the marriage penalty at lower incomes). Loss of personal exemptions shouldn't matter because at $550k MFJ the personal exemptions have already phased out anyway. The figures would look much, much worse if you were single. Owning your apartment also makes it worse because you would otherwise take the standard deduction with the loss of SALT deductions, which was increased somewhat (and in a way that really benefits you since the loss of the personal exemption doesn't affect you at all anyway due to the phase out), but instead you would still itemize for the mortgage interest deductions and don't benefit from the increased standard deduction.
That being said, this calculator doesn't take into the AMT, which could change your figures.
Edit: Saw you said $1k/month rather than $1k/year. I can't reproduce that with reasonable assumptions about mortgage/charity/etc. deductions and property taxes, so there may be something entered incorrectly. $12k/year increase seems really high (and actually the calculator gives you a big tax cut if you didn't have any mortgage/charity deductions or property tax). I do get an $11k/year increase in taxes if you were filing as single with a $550k income, though, which might be the issue.