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07-13-2020, 01:42 PM
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#41
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,099
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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... 
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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07-13-2020, 01:48 PM
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#42
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
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 Quote:
Originally Posted by 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... |
Your country appreciates the sacrifice. [emoji12]
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07-13-2020, 06:56 PM
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#43
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Recycles dryer sheets
Join Date: Nov 2017
Location: Green Bay
Posts: 226
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Effective rate 7%
Marginal rate 12%
Limiting income to ACA MAGI Cliff
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07-13-2020, 07:01 PM
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#44
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Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
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33% effective federal tax on $1.4M of income
__________________
Consistently sets low goals and fails to achieve them.
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07-13-2020, 07:26 PM
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#45
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,087
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0%, qualified dividends helps.
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07-14-2020, 06:40 AM
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#46
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2014
Posts: 7,373
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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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07-16-2020, 10:16 AM
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#47
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Recycles dryer sheets
Join Date: Mar 2014
Location: .
Posts: 382
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13.3% effective tax rate. Way up in 2019 due to portfolio rebalancing.
(Prior year was 1.2%)
__________________
“We always may be what we might have been.” -- Adelaide Anne Procter
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07-17-2020, 05:22 PM
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#48
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,555
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Quote:
Originally Posted by RunningBum
0% federal.
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You win!
__________________
Balance in everything.
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07-17-2020, 06:07 PM
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#49
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Recycles dryer sheets
Join Date: Nov 2010
Location: Crossville
Posts: 429
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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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07-17-2020, 06:42 PM
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#50
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Full time employment: Posting here.
Join Date: Jun 2017
Location: Punta del Este
Posts: 643
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Quote:
Originally Posted by RunningBum
0% federal.
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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!
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07-17-2020, 09:20 PM
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#51
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2007
Posts: 13,228
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Quote:
Originally Posted by Retired Expat
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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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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07-17-2020, 09:24 PM
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#52
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Full time employment: Posting here.
Join Date: Oct 2013
Posts: 512
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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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07-18-2020, 05:10 AM
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#53
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Recycles dryer sheets
Join Date: May 2015
Posts: 244
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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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07-18-2020, 06:12 AM
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#54
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Recycles dryer sheets
Join Date: Nov 2011
Location: West Plains
Posts: 151
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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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07-18-2020, 09:57 AM
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#55
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Dryer sheet aficionado
Join Date: Apr 2011
Location: Macedon
Posts: 35
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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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07-18-2020, 10:38 AM
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#56
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2007
Posts: 13,228
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Quote:
Originally Posted by Bdroc
Things could change if Biden wins. He proposes to tax capital gains as ordinary income ....
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on income over $1M. No slanted politics here, please.
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07-18-2020, 10:42 AM
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#57
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,724
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We need to keep election rhetoric out of the conversation. 
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07-18-2020, 10:58 AM
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#58
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Thinks s/he gets paid by the post
Join Date: Aug 2012
Posts: 1,862
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10% effective
24% marginal (thanks Roth Conversions  )
__________________
FIRE Class of 2018 @ 61
Old men and women sit in the shade of trees they planted long ago
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07-18-2020, 12:38 PM
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#59
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Full time employment: Posting here.
Join Date: Feb 2018
Location: An Un-Organized Township of Maine
Posts: 801
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Quote:
Originally Posted by RunningBum
Yours maybe. No depreciation for me. Isn't that just kicking the tax can down the road?
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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.
__________________
Retired at 42 and I have been enjoying retirement for 18 years [so far].
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07-18-2020, 01:50 PM
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#60
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Thinks s/he gets paid by the post
Join Date: Oct 2019
Posts: 3,672
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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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