Heres a good one...whats your effective tax rate

[SteveR]

Negative 0.2% State plus federal rate.

Hey Justin,

You have your own printing press or are you living under a bridge somewhere?

That is one great tax rate....the Feds and state are paying you!

 

[justin]

You have your own printing press or are you living under a bridge somewhere?

That is one great tax rate....the Feds and state are paying you!

You didn't hear it from me, but the tax code may be screwed up. Yes, the feds are paying me big time, but the state decided to take most of the windfall back.

This year I'll probably have to pay a little tax with my wife working.

 

[Martha]

Got my taxes from the accountant today. We switched accountants to a guy I know and like. I am very happy with him so far. I wasn't ready to do our own returns yet. Maybe in a couple of years when we don't have income from so many states.

Did pretty good this year. Average federal rate was 16.57%. With me working only part time and dumping all I could into the 401k and profit sharing, our tax bracket on ordinary income was at the 25% level and capital gains at 15%. We did have about $5500 in AMT though.

Minnesota bracket was 7.85%, Arizona at 4.72%, and Wisconsin at 6.75%.

 

[Dawg52]

Personally?   -0- %

JG

Is he back?

 

[Dawg52]

Dumb me......I see that is an old post. Oh well, time for a nap.

 

[cute fuzzy bunny]

yeah, that was when he was trying to look tax savvy by showing his zero income tax. He pays zero by filing separately from his wife and putting the tax burden (and the resulting payments) on her. Probably results in her paying more than they'd pay filing jointly.

 

[treypar]

My effective rate is 32%. Hope to get it down in retirement.

 

[eridanus]

yeah, that was when he was trying to look tax savvy by showing his zero income tax. He pays zero by filing separately from his wife and putting the tax burden (and the resulting payments) on her. Probably results in her paying more than they'd pay filing jointly.

He also has/had a carryforward Net Operating Loss that negated any income.


As is, without any more stuffing of my retirement accounts, I'm paying 4.64% fed income + 12.88% SS.

If I add in the state property tax, I'm paying almost 24%. Ouch.


Edit: TaxCut apparently designates the total self-employment tax as just SS in the pie chart of "where it went." It does include medicare.

 

[BUM]

I was getting ready to brag about my .24% tax rate when I discovered that I had double-dipped on some medical expenses. Now the official rate is 2.9%

My daughter's rate via 1040EZ was a hefty 22%. Nothing EZ about that.

 

[Martha]

We are probably stuck for two or three more years with fairly significant income taxes because our real estate LLCs are now selling their underlying properties.

Even though Phoenix has had its real estate market flatten out, the condo conversions we are participating in are still going gangbusters. I guess it's all location. We are getting about $8,000 a month on one of the conversions as it sells units. Another conversion was just completed and already 100 units are under contract to sell.

Looks like a pretty good year ahead.

Knock on wood.

 

[unclemick]

2005 - 0.012% all thanks to Katrina.

2006 - 23% State plus Federal (ballpark) - yikes! Now single and hitting the trad IRA stash. Which pot sure does make a diference. SWR jumps to 5% with a little Roth mini Conversion buried in there.

 

[Nords]

I can finally join this thread too. Four tax returns and the estimated taxes. I rue the day I decided to start selling designated shares on schedule D, but my BIL the CPA has been working 100-hour weeks since February so I'm not sniveling.

Since we're all finishing our taxes, anyone wanna share their tax efficiency?
Turbotax spits it out for you on the cover sheet it prints with the returns.

0.0%. Oh, wait, that's the kid's tax returns. It's not totally zero since she has to turn over two bucks to the state.

7.66%. We took some rebalancing cap gains when Tweedy, Browne was $25/share and couldn't possibly go any higher (it's ~$28.50/share now but the rest of the portfolio has caught up). Those Roth IRA conversions add a bit, too, but we came in just $100 short of the top of the 15% bracket. I was a little off the dividends & cap gains but I made it up on the tax deductions.

Including state taxes our total percentage of taxable income was 11.74%. That's a little higher than I like (last year was 8% when we weren't taking cap gains) but it beats the heck out of the 18-23% we were paying for almost two decades before I ER'd. It'll probably be back down to 8% in 2006.

No complaints. I built a spreadsheet tracking nearly 30 years of spouse & I working since my first paycheck on Murrysville Golf Course. Our retirement portfolio and our net worth both rose last year, thanks to the small-cap stock & real estate markets. Our retirement portfolio is catching up to our lifetime salary. Our net worth is finally closing in on our lifetime total of our salary, interest, dividends, & cap gains. Over all those years of working, we've paid 13.04% of our total earned & unearned wealth in taxes.

Now it's time to take a look at the college-cost spreadsheet, an exercise I haven't done for a year or two. Can we say "scholarship"? We'd better learn how to...

 

[cute fuzzy bunny]

Let me make you tax weary feel a little bit better. My last working years I had to write five figure checks to the state and six figure checks to the feds, and that was in addition to a ridiculous amount of withholding.

Yes, you can smile while you write those checks, but it aint easy. You think "At least I have the good fortune to have made enough money to have to pay this much in taxes" and "Wow, I think I've just bought my very own wing strut for a B-1!"

 

[mickeyd]

TurboTax says that it is only 10.33% for 2005. Damn that's sweet!

My 2006 goal is now to get it down to single didgets.

 

[REWahoo]

Federal income tax only - 21.7%, totalling all taxes - 26.9%

I got creamed by having to cash out all my stock options (I know, what am I complaining about) when my former company was sold just before I retired.

2006 will be much different as most of our expenses will be from after-tax savings and we will convert some trad. IRA money to a Roth, working hard to stay just within the 15% bracket.

 

[laurence]

~12% for Feds, DW sold all stock options in preparation of her departure.

 

[Nords]

2006 will be much different as most of our expenses will be from after-tax savings and we will convert some trad. IRA money to a Roth, working hard to stay just within the 15% bracket. 

I've grown to love the endlessly entertaining hours that I've spent tweaking IRS Form 8606. Don't put it off until December!

 

[REWahoo]

I've grown to love the endlessly entertaining hours that I've spent tweaking IRS Form 8606. Don't put it off until December!

Thanks, I think. My plan is to start noodling with the numbers in October. Can't wait.

 

[mathjak107]

here in new york city and getting whacked with the amt tax on a large capital gain it was 17.2 federal and almost 12% state and local.........yikes

 

[unclemick]

Lucky 13th year of ER - 19% Fed, filing single. 0% in 2005 thanks to Katrina.

sniff, sniff, cry, cry

 

[sgeeeee]

I've been waiting for a Schedule K1 form so I could complete my taxes. Finally, I can answer the question: 3.51%.

 

[scrinch]

24.9% President Bush
7.4% Governor Schwarzenegger

2006 will be worse, with a big severance package as well as self-employment tax.

 

[dusk_to_dawn]

Effective rate is 8.46% for Fed, still have to do state. I think it used to be lower when I itemized.