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Old 01-22-2012, 08:34 PM   #41
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Bear in mind that I am retired, with no pension, retiree medical coverage, or Social Security.
Same here.

2010 6.8%
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Old 01-22-2012, 08:40 PM   #42
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Very interesting real data from real people! Of course I assume no one has a reason to lie here, as we are all anonymous (except for people who have posted their own photos of course ).

So, to reciprocate, I will share my numbers. I never looked really close at the taxes, not even my own, as I just paid whatever the tax program told me. But seeing wildly disparate numbers made me curious. So here goes.

My income for 2010 was in the low six-figure, but it included my part-time income, which was part 1099, part W2 (I wish my portfolio alone would give me that kind of return so that I would not have to work. Oops, I forgot I said I worked for fun ).

After miscellaneous adjustments, such as carried-over capital losses, HSA and self-employed health insurance, before-tax savings, etc..., my AGI is 81% of gross.

Then, deductions, personal exemptions, etc... got taken out, and my taxable income was then a bit less than 50% of my gross. My federal income tax got computed off that.

Then, I got education tax credit taken off.

The result is that for federal income tax, I paid about 5% of the AGI, or 4% of the gross income.

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I pay 15% of AGI, almost to the penny. And I have relatively small SS, and no pension, though I am required to withdraw RMDs.

I wish I could see some of the returns where people describe paying almost no federal income tax. I need to learn some of that sht!

Ha
I hope this does not make you mad, Ha. The main thing I see is that we were filing "married joint return", had personal exemptions for a family of 4, some deductions, and the college education credit. These added up.

To make you feel better, my children are both done with college. One already flew the nest. I will pay more for 2011 and even more in 2012, although it will not be anything like when we both worked full-time. Golly, it was almost not worth working for my wife, as she made quite a bit less than I did.
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Old 01-22-2012, 11:14 PM   #43
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The result is that for federal income tax, I paid about 5% of the AGI, or 4% of the gross income.


I hope this does not make you mad, Ha. The main thing I see is that we were filing "married joint return", had personal exemptions for a family of 4, some deductions, and the college education credit. These added up.
Yep. 0% to 2.53% the past three years. Kids and edu expenses. Not really a good ROI on a pure current numbers view

I'll be good and skip the tax rant. OK, I won't be good, I'm just too tired right now


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Old 01-23-2012, 11:32 AM   #44
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Still working right now.

Our federal income tax paid was below 5% of AGI for 2010. That is the highest we have paid in recent history. Typically our % is a couple percent but DW got a massive raise last year and we did Roths instead of Traditional IRAs for 2010.

For 2011 I am estimating we will pay around 1% of AGI.

For 2012 I estimate we will have a negative 1% tax rate (based on AGI) due to increasing the number of kids in 2012 (if everything comes out ok!).

This is on an AGI under $100,000 but a total gross income a bit over $100k (we have roughly $70-75k a year in tax deferred income between 401ks, 457s, IRAs, mandatory pension withholding, profit sharing contrib, etc).

What we do: have a lot of kids, defer what we can in tax advantaged savings, tax loss harvest for $3000 in capital losses, tax free qualified dividends, keep taxable cap gains to a minimum (or non-existent).

This reminds me that I need to reduce our federal tax withholding to almost nothing for 2011...

edit to add: lest anyone thinks we have a perfect set up, we still get hit pretty hard with SS/medicare taxes that probably add up to a five figure amount or very close (in years where SS is 6.2% and not 4.2% like this year). And our state income taxes are typically similar to our fed income taxes, and will be higher in the future since kids don't reduce our state tax burden as much.
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Old 01-23-2012, 11:43 AM   #45
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About 6% federal for me. This is with claiming DD5 this year, $10K alimony paid, FSA, DCFSC, mortgage interest, property tax decuctions, 401K contributions, etc.
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Old 01-23-2012, 11:50 AM   #46
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This is on an AGI under $100,000 but a total gross income a bit over $100k (we have roughly $70-75k a year in tax deferred income between 401ks, 457s, IRAs, mandatory pension withholding, profit sharing contrib, etc).
I guess I don't understand your calculation. If you have $70 - $75k in tax deferred income then you didn't take it as income - correct?

If I counted all the income from the bonds in my tax deferred accounts then my gross income would also be much higher than what is reported on my tax return. Since I don't take this as income and defer it for some future tax year I don't use it in any calculation for 2010 or 2011, (tax paid)/(annual income).
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Old 01-23-2012, 12:03 PM   #47
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I guess I don't understand your calculation. If you have $70 - $75k in tax deferred income then you didn't take it as income - correct?

If I counted all the income from the bonds in my tax deferred accounts then my gross income would also be much higher than what is reported on my tax return. Since I don't take this as income and defer it for some future tax year I don't use it in any calculation for 2010 or 2011, (tax paid)/(annual income).
Both DW and I are still working (W-2 employees). We (or our employer for a small amount) contribute to various tax deferred retirement savings vehicles and those contributions amount to $70-75k per year. So our "gross income" is significantly higher than our AGI (bottom line income on front page of our Form 1040). My % tax of AGI is based on AGI (bottom line income on front page of our Form 1040).

We also have significant income from investments in 401ks and IRAs but I don't count that either since it isn't in AGI.

My point of mentioning large 401k/IRA/457/pension contributions is merely to illustrate the point that relatively high income earners can still pay a rather small federal income tax.
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Old 01-23-2012, 12:25 PM   #48
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Originally Posted by FUEGO

Both DW and I are still working (W-2 employees). We (or our employer for a small amount) contribute to various tax deferred retirement savings vehicles and those contributions amount to $70-75k per year. So our "gross income" is significantly higher than our AGI (bottom line income on front page of our Form 1040). My % tax of AGI is based on AGI (bottom line income on front page of our Form 1040).

We also have significant income from investments in 401ks and IRAs but I don't count that either since it isn't in AGI.

My point of mentioning large 401k/IRA/457/pension contributions is merely to illustrate the point that relatively high income earners can still pay a rather small federal income tax.
What I am impressed with is your LBYM. Living on a quarter or so of your income, what a nice savings rate!!!
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Old 01-23-2012, 12:37 PM   #49
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What I am impressed with is your LBYM. Living on a quarter or so of your income, what a nice savings rate!!!
This is a result of our implementation of the old advice to "bank your raises". Basically still living roughly like we were right out of college (and driving the same cars lol). Reducing the annual expenses is a much better way to reach FI than increasing income IMHO because there is no increased tax drag (as we would experience if our incomes started rising dramatically).
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Old 01-23-2012, 12:55 PM   #50
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2011 (first year of retirement; last paycheck and other large dumps in January) - 13.3%
2012 (estimated with current level of taxes) - a little over 9%
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Old 01-23-2012, 01:53 PM   #51
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...
The result is that for federal income tax, I paid about 5% of the AGI, or 4% of the gross income.

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I wish I could see some of the returns where people describe paying almost no federal income tax. I need to learn some of that sht!
Ha
I hope this does not make you mad, Ha. The main thing I see is that we were filing "married joint return", had personal exemptions for a family of 4, some deductions, and the college education credit. These added up.
I should have put in a reminder to make retirees feel better; because much of my income still came from earned income (meaning w*rk!), I paid FICA and Medicare taxes. On my 1099 income, I paid both employer's and employee's portions. And as I was selling mostly "work of the mind", I had little deductions for fluff like vehicle expenses, entertainment costs, etc... The only things I could ever deduct were occasional office supplies and computer upgrades, and a spare room for a work space. Peanuts!

In short, I paid more in taxes than many retirees, whose rank I may join any day now.
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Old 01-23-2012, 07:00 PM   #52
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2010 was 9.6% on an AGI of $110k.

The fact that we spent $26k on medical expenses helped keep the tax down.
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Old 01-23-2012, 08:43 PM   #53
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For 2010 it was 13.6%
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Old 01-23-2012, 10:58 PM   #54
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2010 federal form 1040 line 60 ("total tax") / line 38 ("AGI") = 10.95%

Filing status single; 3 kids (whom I get to claim as dependents and for the child tax credit); mostly W-2 income; itemize with a modest mortgage, state income taxes, and charitable deductions.

2011 and 2012 should be similar. Have a kid starting college in 2013 so that will be somewhat of a change.

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Old 01-23-2012, 11:09 PM   #55
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Both DW and I are still working (W-2 employees). We (or our employer for a small amount) contribute to various tax deferred retirement savings vehicles and those contributions amount to $70-75k per year. So our "gross income" is significantly higher than our AGI (bottom line income on front page of our Form 1040). My % tax of AGI is based on AGI (bottom line income on front page of our Form 1040).

We also have significant income from investments in 401ks and IRAs but I don't count that either since it isn't in AGI.

My point of mentioning large 401k/IRA/457/pension contributions is merely to illustrate the point that relatively high income earners can still pay a rather small federal income tax.

Understood.

We were the same, both maxed out 401ks, plus employee health insurance payments were before tax, along with FSA contributions. I was confused when you called them tax defered income, thanks for the explanation
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Old 01-24-2012, 10:26 AM   #56
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16.9% for 2010 FIT, DW & I both still working...

plus Soc Sec,
Medicare,
State Income Tax,
Property Tax,
State Personal Property Tax (cars),
BMV fees,
County Income Tax,
State Sales Tax,
Gas Tax

- what have I forgotten?
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Old 01-24-2012, 11:36 AM   #57
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16.9% for 2010 FIT, DW & I both still working...

plus Soc Sec,
Medicare,
State Income Tax,
State Property Tax,
State Personal Property Tax (cars),
BMV fees,
County Income Tax,
State Sales Tax,
Gas Tax

- what have I forgotten?
What is the state property tax you mentioned? Here in the Chicago suburbs, we pay only local property tax. I'm assuming by "property" tax, you mean real estate tax.

Have I been missing out on something? Yet another chance to pay some more taxes?
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Old 01-24-2012, 11:40 AM   #58
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MFJ
2 exemptions
($3,000) CG
standard deduction

14.72% Calculated as FIT paid / 2010 AGI
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Old 01-24-2012, 12:19 PM   #59
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For 2010 our tax would have been 10% of AGI but after the Making Work Pay credit and the Residential Energy credit (new windows) it was 7% of AGI. Filed MFJ, standard deduction, no dependents and total income was in the 15% bracket. That was the last year that DH had any salary. He retired in June 2010.

For 2011 DH had a pension (taxable for fed and state) all year, I had a part time job and we had a little interest income. Filing MFJ, standard deduction, no dependents, no tax credits with total income in the 10% bracket. Taxes paid will be 4.6% of AGI.
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Old 01-24-2012, 12:33 PM   #60
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I will have to take a look at mine, but think it is small as we are like others with education credits, kids, joint etc. etc., so I will guess about 5%


But, I just estimated my bosses rate for 2011... 28%... and he is pissed on how much he has to pay... he also has credits that he can not use, so he thinks congress' talk of special tax credits are a joke... if you can't take them, then why give them
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