I compiled the combination of Federal, State (NY), and Premium Tax Credits (PTC) for the Second Lowest Cost Silver plan in my area.
The table below shows what each additional $1,000 of income does when taxes and PTC reductions are considered.
Notice the bulge of effective "marginal" rates, the "PTC tax torpedo".
Something to consider when doing Roth conversions.
Income yearly | Each additional $1,000
$17,000 | reduced by
$18,000 | 26.39%
$19,000 | 26.27%
$20,000 | 30.19%
$21,000 | 33.62%
$22,000 | 35.03%
$23,000 | 35.85%
$24,000 | 35.12%
$25,000 | 34.98%
$26,000 | 35.59%
$27,000 | 36.19%
$28,000 | 36.79%
$29,000 | 37.80%
$30,000 | 37.28%
$31,000 | 37.52%
$32,000 | 38.01%
$33,000 | 38.51%
$34,000 | 39.02%
$35,000 | 39.51%
$36,000 | 31.10%
$37,000 | 31.01%
$38,000 | 31.00%
$39,000 | 31.00%
$40,000 | 31.01%
$41,000 | 31.00%
$42,000 | 31.01%
$43,000 | 31.01%
$44,000 | 31.00%
$45,000 | 31.01%
$46,000 | 31.01%
$47,000 | 31.01%
$48,000 | 31.45%
$49,000 | 31.45%
$50,000 | 31.45%
The table below shows what each additional $1,000 of income does when taxes and PTC reductions are considered.
Notice the bulge of effective "marginal" rates, the "PTC tax torpedo".
Something to consider when doing Roth conversions.
Income yearly | Each additional $1,000
$17,000 | reduced by
$18,000 | 26.39%
$19,000 | 26.27%
$20,000 | 30.19%
$21,000 | 33.62%
$22,000 | 35.03%
$23,000 | 35.85%
$24,000 | 35.12%
$25,000 | 34.98%
$26,000 | 35.59%
$27,000 | 36.19%
$28,000 | 36.79%
$29,000 | 37.80%
$30,000 | 37.28%
$31,000 | 37.52%
$32,000 | 38.01%
$33,000 | 38.51%
$34,000 | 39.02%
$35,000 | 39.51%
$36,000 | 31.10%
$37,000 | 31.01%
$38,000 | 31.00%
$39,000 | 31.00%
$40,000 | 31.01%
$41,000 | 31.00%
$42,000 | 31.01%
$43,000 | 31.01%
$44,000 | 31.00%
$45,000 | 31.01%
$46,000 | 31.01%
$47,000 | 31.01%
$48,000 | 31.45%
$49,000 | 31.45%
$50,000 | 31.45%