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View Poll Results: What % of your total income (line 22) was your total income tax (line 60)?
0 to 5% 16 18.18%
5% to 10% 22 25.00%
10% to 15% 17 19.32%
15% to 20% 14 15.91%
20% to 25% 8 9.09%
25% to 30% 5 5.68%
30% to 35% 5 5.68%
more than 35% 1 1.14%
Voters: 88. You may not vote on this poll

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Poll: What percentage tax did you pay?
Old 04-08-2010, 02:49 PM   #1
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Poll: What percentage tax did you pay?

I was shocked at what a small percentage of my total income my 2009 income tax was. I had lots of medical deductions, so maybe I am an outlier. Anyway, I thought a poll might be interesting.

Calculate the percentage you paid in income tax by taking 100 times your total tax (line 60 on form 1040) divided by your total income (line 22 on form 1040).
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Old 04-08-2010, 03:04 PM   #2
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12.6% based on your definition. But keep in mind that this excludes 401K and HSA contributions; if I add those back into the denominator (total income) then it drops to 10.5%.

No mortgage, no state income tax, no kids. The IRS loves me for it.
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Old 04-08-2010, 03:08 PM   #3
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21.5% for us. Married filling jointly, no kids, few deductions.
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Old 04-08-2010, 03:15 PM   #4
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Solidly holding down the middle class here, with 15.7%. Rah!

I expect my percentage to go WAY down this year, since I am now retired and wasn't for most of last year.
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Old 04-08-2010, 03:20 PM   #5
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This definition also leaves out all the credits (such as making work pay and homebuyer's credit).

Mine was 0.4% based on my total tax divided by total income (by my definition). Didn't do the math your way, but I'm certain it would be under 5%.
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Old 04-08-2010, 04:29 PM   #6
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How would one vote if "on the cusp"? (Exactly 5%, 10%, 15%, etc.)
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Old 04-08-2010, 04:37 PM   #7
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How would one vote if are "on the cusp"? (Exactly 5%, 10%, 15%, etc.)
Aw, c'mon. Your calculator probably takes it out to 12 digits. Surely it isn't exact, to the penny?
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Old 04-08-2010, 04:53 PM   #8
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Aw, c'mon. Your calculator probably takes it out to 12 digits. Surely it isn't exact, to the penny?
Well! Someone set my calculator to fixed-2. I can't imagine how that happened. I always insist on it being set to "floating."

(The worst part is that thought crossed my mind when I seen it was exactly 2 digits.)
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Old 04-08-2010, 05:30 PM   #9
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I'm too lazy to look up those tax form line values, so I will use TurboTax's calculation of my effective tax rate of 11.11%.
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Old 04-08-2010, 05:39 PM   #10
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By your method: 13%. But, if I subtract out the self-employment tax (which is for SS and Medicare) and thereby make the situation more like someone getting a regular paycheck, then my rate would be 5%
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Old 04-08-2010, 05:57 PM   #11
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By your method: 13%. But, if I subtract out the self-employment tax (which is for SS and Medicare) and thereby make the situation more like someone getting a regular paycheck, then my rate would be 5%
A besides, those aren't really taxes anyway . . . right?
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Old 04-08-2010, 06:06 PM   #12
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This definition also leaves out all the credits (such as making work pay and homebuyer's credit).

Mine was 0.4% based on my total tax divided by total income (by my definition). Didn't do the math your way, but I'm certain it would be under 5%.
Yes, LINE 60 does not really represent the net of how much tax everyone pays. I have $800 credit for some kind of vague thing that seems to credit either me and/or my wife for either working (Making work pay) or for being a government retiree (or is that a government credit for being a retiree?) - are those two equivalent somehow?

I also have $1,000 of education credits that appear after LINE 60. This confused me, I thought I was getting some limit applied to the education credit as it was less than last year, but now it gets split between LINE 49 and LINE 66, so it is about the same.

My AGI is equal to LINE 22, so no comment there.

So LINE 60/AGI = 3.6%

My actual net of LINE 60 after credits/AGI = 1.2%

Ridiculously low. And this is with AGI ~ $75K, so we are not talking poverty level. I do have a small mort deduction, high property tax and medical deductions, but all these credits are just stupid. How about lowering the cost of attending school, rather than make me go through a bunch of forms and incantations to figure out a credit? FAFSA already favors those who blew their money on crap instead of saving and investing it of lesser means, why complicate it with other 'progressive' credits - it creates a mish-mash of complexity. Add to that that other counter-productive tax regs that actually penalize us for saving for college, and it creates a real mess of taxes - I was using three computers at one time today so I could interactively get the numbers from our and our two kids tax forms all entered correctly.

What was the question?


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Old 04-08-2010, 06:07 PM   #13
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A besides, those aren't really taxes anyway . . . right?
See, I knew we'd iron this out!
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Old 04-08-2010, 06:10 PM   #14
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So far I'm highest at 23.4% . . . that means I win, right?
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Old 04-08-2010, 06:12 PM   #15
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You need a negative range in there too, for those who get refundable credits that exceed their taxes.

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Old 04-08-2010, 08:24 PM   #16
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In my peak earning year (2006), I was at 25.05%. Now, I'm down to a more reasonable 12.85%. Amazing what taking a 75% pay cut will do for your taxes.
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Old 04-08-2010, 10:44 PM   #17
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Wow...it's like herding cats, isn't it, IndependentlyPoor? You give us an exact definition and then a bunch of us give you different calculations!

Anywho, using your method, I'm at a titch over 6%.

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Old 04-08-2010, 10:48 PM   #18
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So far I'm highest at 23.4% . . . that means I win, right?

If that is your definition of winning, I'm happy for you. You should be ecstatic next year.
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Old 04-08-2010, 11:57 PM   #19
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For 2009, my first full year being ER, my tax rate expressed as a percent of federal AGI, is 4.9%. I had considerable deductions for med expense (HI premiums), prop taxes, state income taxes, and my co-op's mortgage interest. I also had some income taxed at rates lower than ordinary income (i.e. qualified dividends and cap gains/losses). If I include state income taxes, it rises to 8.4%.

My highest average fed tax rate was 19% back in 2000. Single, no kids.
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Old 04-09-2010, 05:41 AM   #20
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Wow...it's like herding cats, isn't it, IndependentlyPoor? You give us an exact definition and then a bunch of us give you different calculations!

Anywho, using your method, I'm at a titch over 6%.

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