Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
My first year full without work income so this morning I went to calculate estimated taxes due 1/15/2013 to avoid penalties (like every year), since over 83% of our dividends fall after the Q3 deadline. Figured I owe about $4K after DW's withholding and my small Q1 est tax pymt.
Before dutifully sending in a check to the US Treasury, I thought I'd see if having lower income might help. Using DW's last check, I ran our numbers through a quick-n-dirty 1040 spreadsheet online, and it said we have a refund due without Q4 est tax pymt.
Huh? That's impossible!
So I ran through TurboTax 2012 quickly, and it also said refund due.
HUH? No way!
DW's income and our dividends/gains are over the 15% threshold, but just below it ($70,700) after deductions/exemptions.
We've NEVER paid 0% on dividends or capital gains - EVER. To be honest, I never paid much attention to lower brackets. Everything I read today tells me it's true, but I still just can't believe it's right. "tax rate on qualified dividends to 0% for individuals in the 10% and 15% income tax brackets." Are you kidding?
I'm stupified. Brave new world. I must be missing something.
I may never go back to work after all, or strictly as a volunteer if I do...
But we'll owe state taxes, always do.
Yes this is FIRE related!
Before dutifully sending in a check to the US Treasury, I thought I'd see if having lower income might help. Using DW's last check, I ran our numbers through a quick-n-dirty 1040 spreadsheet online, and it said we have a refund due without Q4 est tax pymt.
Huh? That's impossible!
So I ran through TurboTax 2012 quickly, and it also said refund due.
HUH? No way!
DW's income and our dividends/gains are over the 15% threshold, but just below it ($70,700) after deductions/exemptions.
We've NEVER paid 0% on dividends or capital gains - EVER. To be honest, I never paid much attention to lower brackets. Everything I read today tells me it's true, but I still just can't believe it's right. "tax rate on qualified dividends to 0% for individuals in the 10% and 15% income tax brackets." Are you kidding?
I'm stupified. Brave new world. I must be missing something.
I may never go back to work after all, or strictly as a volunteer if I do...
But we'll owe state taxes, always do.
Yes this is FIRE related!
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