Heres a good one...whats your effective tax rate

[cute fuzzy bunny]

Since we're all finishing our taxes, anyone wanna share their tax efficiency?

Turbotax spits it out for you on the cover sheet it prints with the returns.

Mines 3.4%

I'd yell out "WAHOOOO!" but then his wife would get a little nervous.

Then again, I'd like 0% better.

[HFWR]

My marginal is 25%, I think...

But my effective rate was about 18%.

[NYCGuy]

Including state and city income tax, about 36%.

[yakers]

Federal 25%, state 8%.

[retire@40]

Quote:

Originally Posted by Cute Fuzzy Bulldog Since we're all finishing our taxes, anyone wanna share their tax efficiency? Turbotax spits it out for you on the cover sheet it prints with the returns. Mines 3.4% I'd yell out "WAHOOOO!" but then his wife would get a little nervous. Then again, I'd like 0% better.

You are confusing marginal rate with average rate.

[bpp]

Marginal is 20%. Effective (average) is a few percent, after mortgage tax credit.

[cute fuzzy bunny]

My mistake, I was giddy with excitement at not having to stare at tax forms anymore. Average/effective.

I can easily see how doing that all the time might turn one into a noodge.

[justin]

Somewhere around negative one percent (refundable Child Tax Credit).

I just missed the earned income credit. Darn wife got a job and started making too much money.

[grumpy]

Effective rate (per TurboTax) was 10%

Grumpy

[rs0460a]

According to Turbo Tax for the last 4 years, effective tax rate was:

2002* -* 17.14% (less contributions to charity in '02)
2003* -* 14.91%
2004* -* 14.91%
2005* -* 14.36%

Combined income of me/wife in full-time jobs (hopefully less when we RE?)* *

[SteveR]

Taxes are still in the works but last year should be close to prior year which was about 30% Fed. and State combined. That will go down fast in ER when the cash flow changes and we have everything in place to ER.

In the meantime, it is painful.

[LOL!]

Also from Turbotax:
2001 - 20.3%
2002 - 17.2%
2003 - 15.6%
2004 - 15.9%
2005 - 17.4%

Income grew about 15% over that time. Our AGI suggests we are in the 33% marginal tax bracket.

[MRGALT2U]

Personally? -0- %

JG

[SteveR]

Quote:

Originally Posted by MRGALT2U Personally?* *-0- % JG

JG,
Does that mean you don't file any personal income tax because you have no taxable income or does it mean that you wife files an individual return with all income claimed as hers or do you claim all income..hers and your companie and personal income under the corporate taxes?

Just wondering how you can have a zero tax rate while having income from investments, a business, and a working wife.

[Ed_The_Gypsy]

Avg rate for a contractor (moi) working in Alberta, about 30%-maybe a scosh more. I am trying for permanent residency status so I don't have to pay US SS, too. That would add about $14k to the tax bill--each year Canadian Pension Plan (CPP) is a whole lot cheaper to pay than US SS. I will get max SS benefits (I think) , so I don't think it will bother me. As an independent consultant, I get to pay CDN max income tax, but by treaty I still have to pay US SS+Medicare--all 15.2% of it--unless I opt for permanent resident of the frozen north (which is iffy since, although I reside and work here, my house, spouse, kids and cars are down in Warshington State (zero income tax). If I can't make my case, I will have to come up with 2.5 years of US SS in short order.

It is interesting that I pay less avg tax than our friend in NYC.

Ed the Tax Expat

[Maximillion]

Ed, you still get hit with the 7% GST but at least Alberta has no Sales Tax.

The US is one of the last civilized countries without a User Tax, wonder when they will get it and how they will sell it??

Tax necessary to keep social security, eliminate defecit, fund Medicare

Probably call it the Freedom Alernative Tax, the FAT Tax.

[justin]

Quote:

Originally Posted by Maximillion The US is one of the last civilized countries without a User Tax, wonder when they will get it and how they will sell it??

User tax? On drug users? What does this mean??

[cute fuzzy bunny]

Quote:

Originally Posted by SteveR JG, Does that mean you don't file any personal income tax because you have no taxable income or does it mean that you wife files an individual return with all income claimed as hers or do you claim all income..hers and your companie and personal income under the corporate taxes? Just wondering how you can have a zero tax rate while having income from investments, a business, and a working wife.

Ha ha ha. Welcome to my world.

[Ed_The_Gypsy]

Maximillion,

Interestingly enough, there is a movement to eliminate the GST in AB and other parts of Canada.

I prefer to tax the rich. I enlisted in the class war.

And foreigners. Like John Cleese, I want to tax foreigners--who live outside the country.

[Maximillion]

Not John Cleese, that is really crossing the line.

We all hate the Gouge and Screw Tax but it brings in too much money, it's easy for the feds to manipulate, I know Ab hates taxes, but on this one, King Ralph has no control.

Is he still going to AA, haven't heard about him yelling at homeless men lately