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View Poll Results: Poll: Your eff. tax rate (see original post to calculate!)
0% or less 6 5.00%
0% < my eff rate <= 5% 12 10.00%
5% < my eff rate <= 10% 20 16.67%
10% < my eff rate <= 15% 36 30.00%
15% < my eff rate <= 20% 22 18.33%
20% < my eff rate <= 25% 11 9.17%
more than 25% 13 10.83%
Voters: 120. You may not vote on this poll

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Old 08-20-2012, 08:45 PM   #41
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For example, most people know that CD interest & bond dividends are taxed at a higher rate than stock dividends, right? That knowledge might cause one to place bonds and equities in different kinds of accounts.
We paid 15% last year.
I forgot about paying less for dividrnds vs. CD's and savings. If the same rules apply next year, we'll have to xfer some money to funds or stocks.

I just began collecting SS this year and hubby will start next yr. Since SS is unearned, we don't have to pay taxes at the end of the yr.....right??
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Old 08-21-2012, 03:14 AM   #42
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,152
I early retired in 2007 and I have been paying 0% taxes since 2008. All of my income is interest, dividends, and capital gains. I do not draw any money out of my tax deferred accounts (I am still in my mid-40s). As long as my interest and unqualified dividends are under about $10,000, then the capital gains and qualified dividends are taxed at a 0% rate and so I owe nothing. This 0% tax rate on qualified dividends and capital gains expires this year.

Each year I sell some index funds and ETFs (and later rebuy them or buy a similar fund) in my taxable account so that I have gains up to the top of the 15% bracket, even though I don't need the money. So I am raising my tax basis for the future (so that my future capital gains will be smaller), effectively lowering my future income taxes.

As a single filer with an HSA contribution (which gives me a $3000 deduction), I create capital gains so that I make in total around $45000 per year on my 1040 form without paying income taxes. One does not hit the AMT doing this.

I live abroad and changed my residence to a 0% income tax state before making the move, just to make sure California would not get any ideas about taxing me. So I also pay no state income taxes.
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Old 08-21-2012, 04:59 AM   #43
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I've been in the 10-15% range for quite a few years. Add in property and state income taxes and I'm close to 30%.
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Old 08-21-2012, 07:16 AM   #44
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Originally Posted by Amethyst View Post
Are we the only ones who get stuck paying AMT? Effective rate, 21% whether we deserve it or not. No offshore investments here...
Nope, I am not retired. I got hit with the AMT and ended up just over 21% (have not finished my 2011 taxes yet, but the number is pretty solid. 2010 was just over 21% also.)

I am in Mass so you can add another 5% to that...
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Old 08-21-2012, 08:23 AM   #45
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Originally Posted by heirloom View Post
We paid 15% last year.

I just began collecting SS this year and hubby will start next yr. Since SS is unearned, we don't have to pay taxes at the end of the yr.....right??
Benefits Planner: Income Taxes And Your Social Security Benefits
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Old 08-21-2012, 10:22 AM   #46
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Our effective rate for 2011 was 12.5%. Our marginal rate is 25%. Most of our income comes from pensions/SS, so there is not much opportunity for tax avoidance.
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