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View Poll Results: What tax bracket are you?
10 16 8.38%
15 50 26.18%
25 55 28.80%
28 30 15.71%
33 16 8.38%
35 7 3.66%
39.6 17 8.90%
Voters: 191. You may not vote on this poll

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Old 04-21-2015, 12:00 PM   #21
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I am finally in the 28% tax bracket after years of avoiding it through my 401K, HSA, etc. Not retired and am single.
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Old 04-21-2015, 12:13 PM   #22
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We are in the 10% bracket. A small portion of DHs pension is non-taxable and then in 2014 we fully funded an HSA. We got a nice refund, first one in years, but it's all going to some medical expenses I had in Jan-Mar of 2015.

In one pocket and right out the other! The HSA is almost fully funded for 2015 and I'll reimburse us for this years expenses sometime down the road.

One of our sons found himself $950 into the 25% bracket for the first time. I suggested that he put $1000 in a traditional IRA and save himself $237 in taxes. He does Roth contributions all year but still had room so he took my suggestion.
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Old 04-21-2015, 12:40 PM   #23
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I was 25% bracket for 2014 - but I was still working part of the year, got a lump sum payout of vacation, DH overshot his earned income and hosed his social security during his "failed first attempt at retirement), plus he inherited an IRA that wasn't big enough - so that got cashed out.

This year we'll be in the 10 or 15% bracket. Probably 15% because of rental income and some other stuff. We'll probably do Roth conversions up to the top of the bracket.
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Old 04-21-2015, 12:43 PM   #24
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Tax software tells me if I earned another $100 in interest in 2014 that I would pay another $33 in taxes, so I was in the 33% marginal income tax bracket. Tax software also tells me that my effective average tax rate is about 6%.
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Old 04-21-2015, 01:34 PM   #25
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Originally Posted by LOL! View Post
Tax software tells me if I earned another $100 in interest in 2014 that I would pay another $33 in taxes, so I was in the 33% marginal income tax bracket. Tax software also tells me that my effective average tax rate is about 6%.
How in the world are you in the 33% bracket with an effective tax rate of only 6%

We are also in the 33% bracket + 3.8% ACA, paying $36.80 on every $100 (for 2014) and our effective average tax rate is almost 22%.
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Old 04-21-2015, 01:39 PM   #26
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Doing everything legally possible to stay in the 25% bracket while we're both still working. (Un?)Fortunately it gets harder every year.
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Old 04-21-2015, 01:41 PM   #27
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I do what ever I need to in order to stay in the 15% bracket....
+1 And try to do Roth conversions that won't take me over 15%: a challenge....

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Old 04-21-2015, 01:54 PM   #28
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15%
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Old 04-21-2015, 01:59 PM   #29
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staying under 15% until RMD's kick-in at 70.5
+1.
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Old 04-21-2015, 02:29 PM   #30
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I'll never be below the 25% bracket. Pensions are wonderful things, so I certainly won't complain about paying the taxes.
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Old 04-21-2015, 04:24 PM   #31
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Originally Posted by Fermion View Post
How in the world are you in the 33% bracket with an effective tax rate of only 6%

We are also in the 33% bracket + 3.8% ACA, paying $36.80 on every $100 (for 2014) and our effective average tax rate is almost 22%.
I am a master of tax planning including tax credits. For one thing, I have no interest income, but if I did, then it would be taxed at 33%.
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Old 04-21-2015, 04:30 PM   #32
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staying under 15% until RMD's kick-in at 70.5
+1
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Old 04-21-2015, 04:49 PM   #33
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15% for now, when I start SS next year it'll be into the 25% bracket. First world problem so no complaints.
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Old 04-21-2015, 04:50 PM   #34
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39.6% bracket with DW still w*rking. 32.2% effective rate.
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Old 04-21-2015, 05:06 PM   #35
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28% tax bracket, 26% effective tax rate.....Grrrr, too much PT work and having taxable SS + first RMD pull!

Really got to lay off the PT work! (actually, I already did).
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Old 04-21-2015, 05:21 PM   #36
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Quote:
Originally Posted by LOL! View Post
Tax software tells me if I earned another $100 in interest in 2014 that I would pay another $33 in taxes, so I was in the 33% marginal income tax bracket. Tax software also tells me that my effective average tax rate is about 6%.
Quote:
Originally Posted by Fermion View Post
How in the world are you in the 33% bracket with an effective tax rate of only 6%....
Quote:
Originally Posted by LOL! View Post
I am a master of tax planning including tax credits. For one thing, I have no interest income, but if I did, then it would be taxed at 33%.
I suspect that LOL's low effective rate is due to a boatload of foreign tax credits from international holdings... plus probably a lot of qualified dividends and LTCG that only get taxed at 15% even if one is in the 33% bracket....just a guess.

Perhaps the master will share some of his secrets.
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Old 04-21-2015, 05:22 PM   #37
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Your poll does not reflect the change to the tax code by the ACA so I can't vote as no category fits. My federal income taxes for 2014 were 0, actually less than 0 as I got a refundable tax credit for $1800.
Is the the so called "Earned Income Credit" ?
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Old 04-21-2015, 05:44 PM   #38
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My net income puts me in the 15% bracket. My taxable income is near the top of the 10% bracket. 4% state.
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Old 04-21-2015, 06:20 PM   #39
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Pretty much whatever I want it to be! But in 2014 I ran it up to a marginal rate of 28.8%, which was the 25% bracket plus the 3.8% ACA investment tax. I entered 28% in the poll, though 25% might be the better answer.
I am generously curious about how you ended up paying the 3.8% Net Investment Income Tax while remaining in the 25% bracket. Perhaps you have many Schedule A deductions or you are effected by the (cryptic) MAGI calculation for NII described below.

I was under the impression that NII only applies to taxpayers with MAGI over 200,000/250,000 for single/married returns, which I thought would usually imply a nominal marginal tax bracket of at least 28% or 33%.

-gauss


Quote:
4. What is modified adjusted gross income for purposes of the Net Investment Income Tax?
For the Net Investment Income Tax, modified adjusted gross income is adjusted gross income (Form 1040, Line 37) increased by the difference between amounts excluded from gross income under section 911(a)(1) and the amount of any deductions (taken into account in computing adjusted gross income) or exclusions disallowed under section 911(d)(6) for amounts described in section 911(a)(1). In the case of taxpayers with income from controlled foreign corporations (CFCs) and passive foreign investment companies (PFICs), they may have additional adjustments to their AGI. See section 1.1411-10(e) of the final regulations.
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Old 04-21-2015, 06:39 PM   #40
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Quote:
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I am generously curious about how you ended up paying the 3.8% Net Investment Income Tax while remaining in the 25% bracket. Perhaps you have many Schedule A deductions or you are effected by the (cryptic) MAGI calculation for NII described below.

I was under the impression that NII only applies to taxpayers with MAGI over 200,000/250,000 for single/married returns, which I thought would usually imply a nominal marginal tax bracket of at least 28% or 33%.

-gauss
Not at all. You can easily be in within the 15% tax bracket but pay the NIIT if most of your income is from long-term capital gains and qualified dividends. You won't pay the higher income tax brackets on ordinary income. You might even get 0% tax on some of your cap gains/qual dividends. You'll probably be driven to pay some AMT though. That acts like a 26% tax bracket on part of your ordinary income - but only applies to ordinary income.
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