My 2010 income tax exceeds the average household income

[soupcxan]

2010 is the first time that DW and I will both have a full year of income after finishing our graduate programs, and TaxCaster tells me that we will pay >$50k in federal taxes which is around the average household income. Probably old hat to many here but it seems odd to me...I don't feel "rich"...

[REWahoo]

Quote:

Originally Posted by soupcxan TaxCaster tells me that we will pay >$50k in federal taxes...

If you are paying more than $50,000 in federal taxes, you are making some serious jack and have an income far above average - or you've made some big errors when inputting your numbers into TaxCaster...

[aaronc879]

Quote:

Originally Posted by soupcxan 2010 is the first time that DW and I will both have a full year of income after finishing our graduate programs, and TaxCaster tells me that we will pay >$50k in federal taxes which is around the average household income. Probably old hat to many here but it seems odd to me...I don't feel "rich"...

Just think how the people with a total gross income of less than $50K feel. I've never made $50K gross before. I made $48,XXX this year and it's just the 3rd time making over $45K. I feel fairly well off as there are many that would love to have my income. My brother says he'd live like a king on my income.

[NW-Bound]

Quote:

Originally Posted by soupcxan ...we will pay >$50k in federal taxes...

You don't pay enough!

You need to use the form 1040-SEZ, or 1040 Super Easy.

It just has two lines.

1. How much did you make last year?
2. Send it in!

[jstriding]

Quote:

Originally Posted by NW-Bound You don't pay enough! You need to use the form 1040-SEZ, or 1040 Super Easy. It just has two lines. 1. How much did you make last year? 2. Send it in!

Hilarious!

I remember once sending in that much in taxes, years ago. And yes, it was serious jack, even after accounting for the business deductions taken for operating the business at that level! (I think our combined was a hair shy of $400K.)

[Animorph]

You just need more time to accumulate "stuff". It's always tough starting out, regardless of income level. Just remember to save a lot, before spending the rest.

[Westernskies]

Congratulations on your hard work and success.
Now, get out your checkbook.

[captain3d]

Hi All

Our taxes this year were more than three times what we actually spent living. Is that some kind of a record?

Yes it was a great year. Yes we are cheapskates saving for freedom :-)

First post here...phil

[photoguy]

Quote:

Originally Posted by soupcxan TaxCaster tells me that we will pay >$50k in federal taxes which is around the average household income. Probably old hat to many here but it seems odd to me...I don't feel "rich"...

This is a great problem to have. As many have stated you have to be pulling in far more than the median household income to reach that tax level.

Regarding not feeling "rich" -- I think there's a tendency for most people not to feel rich because they are always comparing themselves to others who are more successful/older. I remember listening to an NPR story about this same issue and even people with net worth of 10's of millions didn't consider themselves rich because they knew somebody with billions!

[Aiming_4_55]

Congrats on your studies and employment. It's great.

Feeling rich can mean a variety of things.... those making the median salary/income would view you as rich!

At one time, I felt rich as a teen earning $$ to pay my tuition bill. YMMV

[audreyh1]

Quote:

Originally Posted by soupcxan 2010 is the first time that DW and I will both have a full year of income after finishing our graduate programs, and TaxCaster tells me that we will pay >$50k in federal taxes which is around the average household income. Probably old hat to many here but it seems odd to me...I don't feel "rich"...

Try to imagine what it would be like to make ends meet on the average household income, and then maybe you'll just feel a little "rich".

Audrey

[FinanceDude]

Taxes are the price you pay for doing WELL!!!

[Texas Proud]

Quote:

Originally Posted by soupcxan 2010 is the first time that DW and I will both have a full year of income after finishing our graduate programs, and TaxCaster tells me that we will pay >$50k in federal taxes which is around the average household income. Probably old hat to many here but it seems odd to me...I don't feel "rich"...

The problem seems to be your definition of 'rich'... is it income based or asset based... or, what I think you might define as 'rich' is a Donald Trump...


By income levels you are rich... only a very small % of people make your kind of income... as someone mentioned... there are people who take 10 years to make that kind of money... so... rich...

Good for you... if you live frugal then you will amass a small fortune quickly and then can decide if you want to FIRE or just be FI for awhile...

[kyounge1956]

Quote:

Originally Posted by soupcxan 2010 is the first time that DW and I will both have a full year of income after finishing our graduate programs, and TaxCaster tells me that we will pay >$50k in federal taxes which is around the average household income. Probably old hat to many here but it seems odd to me...I don't feel "rich"...

Why wouldn't you feel rich? On a world scale you're not just rich, you're extremely rich. (I base this assertion on an estimate of your income calculated from the tax worksheet in the form 1040 for 2009. Your earnings were way too high to use the tables—that ought to be a tipoff right there that you're making more money than most people.) If I did the math right, your household income is in or near the top one-thousandth of one percent in the world, in only your first full year of earnings. To put it another way, in a single year you bring in more than the combined worth of my house, my car, and all the personal possessions I've accumulated over the last quarter century, and by income, I'm rich—in the top 1% of incomes worldwide. The only valid reason I can think of for you not to feel rich would be a big load of debt, maybe from those graduate programs you mentioned. But other than that, if you don't feel rich, IMO you need to recalibrate your feelings.

[Fantasm]

My taxes are gonna be $195K again
Unmarried and no deductions
I fully support (all expenses) my long-time girlfriend of almost 9 years, and I still can't claim even "Head of Household" as far as I understand the tax rule. So I can't even claim that.

Makes me so sad/angry/depressed/annoyed

I need to have a marriage of convenience and adopt like 3 kids, but then my expenses would go up and the difference between tax payments and expenses wouldn't be much, more than likely.

Arggg

[Alan]

Quote:

Originally Posted by Fantasm My taxes are gonna be $195K again

If I made enough money to be paying $195K in taxes I wouldn't be posting a sad , I would be dancing

[kyounge1956]

Quote:

Originally Posted by Fantasm My taxes are gonna be $195K again Unmarried and no deductions Makes me so sad/angry/depressed/annoyed I need to have a marriage of convenience and adopt like 3 kids, but then my expenses would go up and the difference between tax payments and expenses wouldn't be much, more than likely. Arggg

I never cease to be amazed by the ability of people who are rolling in dough to feel sorry for themselves. If you're looking for a real reason to be angry and depressed, a loveless marriage is probably a good first step.

[travelover]

My grandfather used to ask - are you bragging or complaining?

[FUEGO]

Quote:

Originally Posted by kyounge1956 I never cease to be amazed by the ability of people who are rolling in dough to feel sorry for themselves.

I never cease to be amazed by the ability of people who feel compassion for someone who loses $195k from theft or natural disaster yet don't care when someone loses $195k to the government (at the point of a gun).

[Fantasm]

Quote:

Originally Posted by Alan If I made enough money to be paying $195K in taxes I wouldn't be posting a sad , I would be dancing

Not when you realize that all the hours you spend working, and close to 50% off the top of what you make is then paid out to someone else for doing nothing.
Its like protection money or the mafia shaking you down for being on their turf.

Here's a thought: Since I make more, and thus have to pay more, why don't I get preferential treatment or better benefits than someone who makes less and gets the exact same I do? Just because I make more, doesn't make me any more of a drain on the system than someone who makes less. In fact, chances are that I help the system since I spend more and maybe create more jobs.