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Old 07-10-2020, 09:29 AM   #21
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Yes, I specified Federal tax, meaning Federal Income tax.
I fixed the thread title for you to make it clear.
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Old 07-10-2020, 09:31 AM   #22
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Originally Posted by LadyGaga View Post
42% eff tax rate
I can only dream of being taxed that much. It would mean I make a crazy high income.
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Old 07-10-2020, 09:35 AM   #23
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Originally Posted by USGrant1962 View Post
25% state and Federal income tax - self employment tax on my part time consulting gig is a killer.

Add in property tax and sales tax and it is north of 30%. I'm sure OP means "effective INCOME tax rate" but that is hardly the whole taxation story.
Self employment tax is an absolute killer. I Gross around $20K and net around $15K and have to pay over $2K on self employment tax. I can get Federal down to zero and State is only around $100 but self employment is a killer for lower income people.
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Old 07-10-2020, 09:43 AM   #24
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I fixed the thread title for you to make it clear.


Thank you!
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Old 07-10-2020, 10:33 AM   #25
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17.5% effective federal, due to a one-off, sizable NIIT hit last year. I'm expecting a substantially lower rate for tax year 2020, probably closer to about 9%.
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Old 07-10-2020, 10:37 AM   #26
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Self employment tax is an absolute killer. I Gross around $20K and net around $15K and have to pay over $2K on self employment tax. I can get Federal down to zero and State is only around $100 but self employment is a killer for lower income people.
I hear ya. I make a small trickle of SE income, and in recent years I've wondered if it's worth the bother. I like that it gives me the ability to contribute a little to my TIRA each year, but all things considered, from an overall tax perspective, it's probably a wash.
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Old 07-10-2020, 11:22 AM   #27
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7.65 effective federal.
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Old 07-10-2020, 11:34 AM   #28
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I can only dream of being taxed that much. It would mean I make a crazy high income.
Yeah, it's that crazy income stuff that makes one suffer with a high tax rate!
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Old 07-10-2020, 12:09 PM   #29
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Yeah, it's that crazy income stuff that makes one suffer with a high tax rate!
No one with that tax rate should be suffering. After taxes they make more than most people do before taxes. No simpathy for them. I would trade any time
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Old 07-10-2020, 12:28 PM   #30
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I had to look, it was 17.31%. Likely not to go down much....which is good and bad
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Old 07-10-2020, 01:14 PM   #31
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As a % of federal AGI, my effective federal income tax rate was 8.4% in 2019, the highest it has been since I ERed. In the last few days of 2019, I liquidated a large stock fund holding and bought into a similar index fund. I had a cap gain of about $50k (plus the $20k it paid in a CG distribution). For most of my other ER years, my effective tax rate was in the 2%-5% range, and in 2020 I'll be toward the lower part of that range. BTW for expense and budgetary purposes, I count the ACA premium subsidy as a reduction in my HI premiums, not a tax reduction.
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Old 07-10-2020, 02:09 PM   #32
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Old 07-10-2020, 02:10 PM   #33
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Old 07-10-2020, 02:17 PM   #34
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0% Federal as I cap gain harvest to simplify our portfolio. I actually wish it was higher, but I'm limited by the ACA cliff.
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Old 07-10-2020, 02:49 PM   #35
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Old 07-10-2020, 02:58 PM   #36
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Per TT, 2019 effective rate was 13.9% with Roth conversion to the top of the 22% bracket. Would have been 4.6% without any conversions. 2018 was 6.4% converting only to the top of the 12% bracket. I'm happy to convert at 22%.
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Old 07-10-2020, 03:58 PM   #37
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Originally Posted by scrabbler1 View Post
As a % of federal AGI, my effective federal income tax rate was 8.4% in 2019...
I used taxable income as the denominator and my effective rate was 16.4% in 2019, up from 4.9% in 2018. Difference was largely due to converting tIRA to Roth to top of the 22% bracket. Made writing that check out a little painful
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Old 07-10-2020, 06:05 PM   #38
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0% Federal and state.
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Old 07-13-2020, 07:42 AM   #39
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Old 07-13-2020, 08:25 AM   #40
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