|
View Poll Results: Poll: Your eff. tax rate (see original post to calculate!)
|
|
0% or less
|
   
|
6 |
4.96% |
|
0% < my eff rate <= 5%
|
  
|
12 |
9.92% |
|
5% < my eff rate <= 10%
|
  
|
21 |
17.36% |
|
10% < my eff rate <= 15%
|
  
|
36 |
29.75% |
|
15% < my eff rate <= 20%
|
  
|
22 |
18.18% |
|
20% < my eff rate <= 25%
|
  
|
11 |
9.09% |
|
more than 25%
|
|
13 |
10.74% |
 |
|
08-20-2012, 07:45 PM
|
#41
|
|
Recycles dryer sheets
Join Date: May 2011
Posts: 154
|
 Quote:
|
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??
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
|
08-21-2012, 02:14 AM
|
#42
|
|
Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 1,183
|
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.
|
|
|
|
|
08-21-2012, 03:59 AM
|
#43
|
|
Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,985
|
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%.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
|
|
|
|
|
08-21-2012, 06:16 AM
|
#44
|
|
Full time employment: Posting here.
Join Date: Jan 2011
Location: Southern Maine
Posts: 672
|
Quote:
Originally Posted by Amethyst
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...
|
|
|
|
|
08-21-2012, 07:23 AM
|
#45
|
|
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
|
Quote:
Originally Posted by heirloom
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
|
|
|
|
|
08-21-2012, 09:22 AM
|
#46
|
|
Recycles dryer sheets
Join Date: Mar 2012
Posts: 125
|
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.
|
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
| Thread Tools |
|
|
| Display Modes |
 Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
