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04-20-2013, 09:27 AM
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#41
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Full time employment: Posting here.
Join Date: Nov 2009
Posts: 592
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Quote:
Originally Posted by Svensk Anga
I find Turbo Tax's quickie estimator good for questions like this. See:
TurboTax® TaxCaster - Free Tax Calculator - Free Tax Estimator
It is much less cumbersome than using the full tax prep software. You can plug in your rough numbers according to source and get a tax calculation in a minute. You can quickly change a number and see how it impacts the bottom line. This is the way to get a quick read on your personal circumstances.
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+1 Easy to use software for estimating taxes. With multiple sources of available income (SS, taxable/deferred investments, part-time work) it allows you to manipulate the numbers (real time) to determine tax consequences. FYI - 2012 version treats "dividends income" bucket as qualified (click on ? button to see this). You have to put ordinary dividends in "miscellaneous income" bucket. Also have to put all federal tax withholding in regular income area.
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04-20-2013, 12:44 PM
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#42
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
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I use the calculators at TaxTips.ca - The Facts on Tax for Canadians to estimate my personal income taxes. I do work with a CPA as I also have a corporation. The good news is that my tax rate for 2012 was <10%. The bad news is that my nominal income (the denominator) was higher than expected due to high dividends and investment income. (No net capital gains as I had previous capital losses). I suppose that high portfolio returns are a good problem to have! But as last year's taxes are used to estimate this year's taxes, I am now forced to pony up higher installments for 2013. The lesson for me is that taxation is not correlated with my expenses unless I am cashing out all dividends and investment income.
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04-20-2013, 01:19 PM
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#43
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Thinks s/he gets paid by the post
Join Date: Nov 2006
Location: Bossier City
Posts: 2,183
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Quote:
Originally Posted by sengsational
Nice find from Frostbite Falls! I dropped $10 into their PayPal without even trying to use the site.
--Dale--
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This calculator shows that if I stick to the plan I've just about settled on, next year's tax rate should be in the 8.85% range. Acutally, it will be less than that since my pension also includes my own contributions over my 36 yr career, which will be paid back to me over time as a percentage of my monthly receipts, so this will lower my tax rate even more. I'm not sure how to actually calculate this so I'll just plan for the 8.85% My federal pension won't be taxed by the state, and apparently the TSP withdrawals and wife's taxable income (after she contribuites 2/3 to her 401k) won't be enough to trigger any taxes by Louisiana either.
After she retires, she will have no pension, and her 401k will only be taxed if we withdraw it. Still thinking about that idea. When my military pension kicks in in 2018, it won't be state-taxed either. Even when wife's SS begins at 62, we'll still be in the low range tax-wise.
edit: after checking on the Louisiana income tax rates posted elsewhere on line, it seems that the calculator missed something in the state tax calculation. Looks like we'll actually owe around $360 in state tax on TSP withdrawals + wife's taxable income next year. Not much, but still something.
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04-20-2013, 02:46 PM
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#44
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Full time employment: Posting here.
Join Date: May 2008
Posts: 597
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Quote:
Originally Posted by Fishingmn
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I tried it out-didn't like it because it gave me an answer I didn't want
Ok it also asked you to put in the taxable ss amount. No one really knows that until you calculate everything you have.
It doesn't have a slot for dividends. LT capital gains might give the same treatment but I think -not always. It calculated a 18% tax rate which seems high. Gross income at 46,000
On the other hand it covered almost all the same ground as Turbotax in a very smooth interface,
maybe they have a shot at being the next big thing.
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04-21-2013, 08:32 AM
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#45
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Moderator
Join Date: Oct 2010
Posts: 10,653
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Quote:
Originally Posted by martyb
... it seems that the calculator missed something in the state tax calculation. Looks like we'll actually owe around $360 in state tax on TSP withdrawals + wife's taxable income next year. Not much, but still something.
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Quote:
Originally Posted by lemming
I tried it out-didn't like it because it gave me an answer I didn't want
...
maybe they have a shot at being the next big thing.
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I would urge everyone to give the site feedback. They do keep saying it's an estimate; they're probably weighing simplicity of input with accuracy of output.
The reason I think it's awesome is because, if it gets popular, people, especially college students and retirees, will use it to help determine what state they'll move to. Spendthrift states will find themselves needing to "compete". Competition in this arena would be a good thing!
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04-24-2013, 12:20 AM
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#46
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Dryer sheet wannabe
Join Date: Apr 2013
Posts: 15
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According to the Turbo tax online calculator, there is no tax on a typical combination of interest, dividends and long term capital gains up to almost $100,000! (If you file jointly w/ two kids.)
With passive income around $50 -75k (which is where I'll likely end up), I could even get earned income tax credit if I have a modest earned income, e.g., from a part time job. Might also qualify for health insurance premium subsidy.
As pointed out by others, many states tax investment income the same as earned income. According to the California tax calculator, you'd pay a little over $4,000 on $95,000 of investment income, for which you'd owe no federal income tax.
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04-24-2013, 05:22 AM
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#47
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Thinks s/he gets paid by the post
Join Date: May 2011
Location: South Eastern USA
Posts: 1,068
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Quote:
Originally Posted by Meadbh
I use the calculators at TaxTips.ca - The Facts on Tax for Canadians to estimate my personal income taxes. I do work with a CPA as I also have a corporation. The good news is that my tax rate for 2012 was <10%. The bad news is that my nominal income (the denominator) was higher than expected due to high dividends and investment income. (No net capital gains as I had previous capital losses). I suppose that high portfolio returns are a good problem to have! But as last year's taxes are used to estimate this year's taxes, I am now forced to pony up higher installments for 2013. The lesson for me is that taxation is not correlated with my expenses unless I am cashing out all dividends and investment income.
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What forces you to make higher estimated tax payments than are necessary? I do not understand.
Edit: Nevermind, Canadian rules!
__________________
All that glitters is not gold. -G. Chaucer, W. Shakespeare
All that is gold does not glitter. -J.R.R. Tolkien
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