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Old 07-13-2020, 01:42 PM   #41
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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...
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Old 07-13-2020, 01:48 PM   #42
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Quote:
Originally Posted by Sunset View Post
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.
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Old 07-13-2020, 06:56 PM   #43
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Effective rate 7%
Marginal rate 12%

Limiting income to ACA MAGI Cliff
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Old 07-13-2020, 07:01 PM   #44
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33% effective federal tax on $1.4M of income
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Old 07-13-2020, 07:26 PM   #45
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0%, qualified dividends helps.
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Old 07-14-2020, 06:40 AM   #46
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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. :-)
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Old 07-16-2020, 10:16 AM   #47
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13.3% effective tax rate. Way up in 2019 due to portfolio rebalancing.

(Prior year was 1.2%)
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Old 07-17-2020, 05:22 PM   #48
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0% federal.
You win!
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Wish it was less
Old 07-17-2020, 06:07 PM   #49
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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.
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Old 07-17-2020, 06:42 PM   #50
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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!
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Old 07-17-2020, 09:20 PM   #51
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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!
Yours maybe. No depreciation for me. Isn't that just kicking the tax can down the road? But I did get hit with 5.1% state income tax. Most of my taxable income was qualified dividends.
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Old 07-17-2020, 09:24 PM   #52
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I am still working. For gross income I used Medicare wages + interest & dividends. Is that how you all are defining "gross income", at least for working stiffs?

Feds
15.2% effective
24% marginal

Fed & State
19.5% effective
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Old 07-18-2020, 05:10 AM   #53
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2018 0%

2019 0%

State Income tax

2018 - 90.00

2019 - 75.00

2020 is the last year to pay State Income Tax since it has been dissolved. Tennessee.
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Old 07-18-2020, 06:12 AM   #54
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0% in 2019 but it won't be that way this year. We took about 62K in capital gains back in February so we'll be paying for it. MO has a mandatory 6% on capital gains, either long or short term. Doubt we'll fall under the 80K income limit to have 0% on our gains for the feds.
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Old 07-18-2020, 09:57 AM   #55
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IIRC $75k can be taxed at 0% for married couples, but the amount is reduced by other income. In other words, that $75k is reduced by income from wages, interest, and IRA distributions.

Things could change if Biden wins. He proposes to tax capital gains as ordinary income and eliminate the stepped up basis.
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Old 07-18-2020, 10:38 AM   #56
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Things could change if Biden wins. He proposes to tax capital gains as ordinary income ....
on income over $1M. No slanted politics here, please.
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Old 07-18-2020, 10:42 AM   #57
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We need to keep election rhetoric out of the conversation.
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Old 07-18-2020, 10:58 AM   #58
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10% effective
24% marginal (thanks Roth Conversions )
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Old 07-18-2020, 12:38 PM   #59
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Yours maybe. No depreciation for me. Isn't that just kicking the tax can down the road?
I don't think so.

When you run your Cost-Basis down, then you must also make improvements to bring your Cost-Basis back up again.

I have used depreciation on rental real estate for years, and I have never seen any bad effect from it.

When you sell one property you roll the equity into a different property, and keep depreciating.
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Old 07-18-2020, 01:50 PM   #60
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I'll be the 7th one to post $0 tax.


2019, I sold $126k of VTSAX realizing $34k of capital gains, had $7,500 of Qualified Dividends, $12k of regular dividends and $4k of interest.
I later reinvested $90k of that VTSAX sale resetting the base. I have a lot in non-taxable accounts, but now that I'm retired, I wonder if the taxed account isn't better. I can keep selling LTCGs, paying zero tax and reinvest at a higher base. Three or four more years and I will have used all my LTCGs in the 0% bracket.

This tax planning is starting to get fun. :-)
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