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Old 05-30-2007, 07:21 AM   #21
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Fed - 28%
State - 6%
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Old 05-30-2007, 12:06 PM   #22
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Nords. do you have some links you could cite that describe how hawaii
(and/or other states) are {retiree} tax friendly ?
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Old 05-31-2007, 01:03 AM   #23
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Fed 33%
State 9.3%
Medicare 2.9%

The total is about 46%. Seems high...I guess I'll just bury my head in the sand again and pretend I didn't calculate this.
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Old 05-31-2007, 07:31 AM   #24
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You should hear my nasty foul mouth every year when I look at the "extra" AMT added to our tax bill!!

Audrey
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Old 05-31-2007, 09:56 PM   #25
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Quote:
Originally Posted by scrinch View Post
Fed 33%
State 9.3%
Medicare 2.9%

The total is about 46%. Seems high...I guess I'll just bury my head in the sand again and pretend I didn't calculate this.
wot? no FICA? (6.2% on the first $95K or so)

That should push it over the 50% mark for you
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Old 05-31-2007, 11:16 PM   #26
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The total tax rate is not really 46% or 50% since 33% is the marginal rate. The effective tax rate is the real one: (fed and state taxes paid+FICA+medicare)/AGI
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Old 06-01-2007, 12:09 AM   #27
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Originally Posted by Alan
wot? no FICA? (6.2% on the first $95K or so)
Yes on FICA, but since I passed the $95K level, it's not included in my marginal (next dollar) rate.

Quote:
Originally Posted by Spanky
The total tax rate is not really 46% or 50% since 33% is the marginal rate. The effective tax rate is the real one: (fed and state taxes paid+FICA+medicare)/AGI
The question asked in this thread is about our marginal, not average or effective rate. That was in fact slightly higher than 46%, since for each additional dollar I earned, AMT phased out more deductions. 2006 average rate was a much more reasonable 31% after all was said and done.
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Old 06-01-2007, 07:50 AM   #28
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Yeah then add in: property tax, excise tax, sales tax, gas tax, ... you get the picture. We're all paying MORE than we want to believe.
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Old 06-01-2007, 12:00 PM   #29
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Fed 28%
State 6%
Soc Sec 6.2%
Medicare 1.45%

total 41.65%

A big reasion I am still "retired" after staying home to raise the kids. Going back now - with what I can make even full time will not quailfy me for more social security than half of what DH has earned.Therefore SS & Medicare taxes I pay would offer me no benefits. If I did work full time our federal rate would probably go above 28% when the AMT did not snag us first.
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Old 06-01-2007, 03:27 PM   #30
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Fed 28%
State 6%
Soc Sec 6.2%
Medicare 1.45%

total 41.65%

A big reasion I am still "retired" after staying home to raise the kids. Going back now - with what I can make even full time will not quailfy me for more social security than half of what DH has earned.Therefore SS & Medicare taxes I pay would offer me no benefits. If I did work full time our federal rate would probably go above 28% when the AMT did not snag us first.
OK, earn $17,000 and put $15,500 into a 401k. You will pay FICA+medicare, but the rest will appear to be tax-free.
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Old 06-01-2007, 10:06 PM   #31
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When success means dying broke . . .

Spend it all, enjoy it!

Remember -- spending your money is not a taxable event.

Spend only after-tax money from your taxable account = 0% tax


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Old 06-01-2007, 10:17 PM   #32
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Spend it all, enjoy it!

Remember -- spending your money is not a taxable event.

Spend only after-tax money from your taxable account = 0% tax

ssssssssssssshhhhhhhhhhhhh NOT SO LOUD... the gov'ment will hear you and tax that too.... whoops too late, it's called sales tax
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Old 06-02-2007, 12:30 AM   #33
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I am in a 15% bracket and no state income tax. After 401K and house interest my income is very low. I am starting to worry about ALT MIN TAX, I will have to see what will make it kick in for me. I am getting more investment gains now outside retirement plans.
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Old 06-06-2007, 11:52 AM   #34
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45.5%

Federal: 37.5% (26% * 1.25 AMT + 5% Child credit phase-out)
State: 8% (7.8% + 0.2% federal deduction phase-out)

These are additive since I pay AMT.

It is a good idea to pay attention to your true tax rate (with all the adjustments and phase-outs), not the rates in the tables.
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Old 06-06-2007, 12:16 PM   #35
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Fed 33%
State 9.3%
Medicare 1.45%
No FICA since agency is out of SS.

Now I know why I want out!
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Old 06-06-2007, 01:54 PM   #36
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How could I forget FICA! With Medicare it's 47%.
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