2019 Effective Federal income tax rate

[Sojourner]

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.

 

[ceciledian]

7.65 effective federal.

 

[aja8888]

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!

 

[aaronc879]

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

 

[Happyras]

I had to look, it was 17.31%. Likely not to go down much....which is good and bad

 

[scrabbler1]

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.

 

[Spanky]

Effective Tax Rate 14.50%

 

[timo2]

8.49% as per turbotax

 

[Willers]

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.

 

[Brett_Cameron]

8.84%

 

[Cobra9777]

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%.

 

[Trooper]

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

 

[Offgrid Organic Farmer]

0% Federal and state.

 

[Rex]

6.6%

 

[prototype]

11% according to TT Summary

 

[Sunset]

my effective rate was 16% for 2019.
Mainly due to converting a LOT of tIRA to Roth, accidentally converted a bit too much

It felt really painful, paying the tax due...

 

[Dash man]

my effective rate was 16% for 2019.
Mainly due to converting a LOT of tIRA to Roth, accidentally converted a bit too much

It felt really painful, paying the tax due...

Your country appreciates the sacrifice. [emoji12]

 

[Splash]

Effective rate 7%
Marginal rate 12%

Limiting income to ACA MAGI Cliff

 

[corn18]

33% effective federal tax on $1.4M of income

 

[jim584672]

0%, qualified dividends helps.

 

[athena53]

5.5% effective rate in 2019 compared to 8.9% in 2018 Main driver was investment results, particularly CG distributions.

Thanks to the poster who noted that historical data in TurboTax was useless. I went back to 2018 to get the results and the numbers at the top showed a small refund, when I remembered owing over $2,000. Very weird. I compared the 1040 numbers to the paper copy of my 2018 return and the deductions are a little higher in the current version but it reduced the amount owed by only about $200. No idea where the $180 "refund" came from but I'll trust the 1040.

I think there's a 2018 1040X in my future but will do more checking before filing. Wonder how many decades it will take to get the refund.

 

[Mo Money]

13.3% effective tax rate. Way up in 2019 due to portfolio rebalancing.

(Prior year was 1.2%)

 

[HI Bill]

0% federal.

You win!

 

[ychuck46]

Wish it was less

6.7%. Have shifted as many dividends as I can over to tax-deferred accounts but can only shelter so much since we collect two SS checks and the wife a pension.

 

[Retired Expat]

0% federal.

Me too for the first time since I started working. $0 dollars paid Federal and I don’t pay any state tax.... Depreciation is our friend!