Join Early Retirement Today
View Poll Results: Retired Singles-How Much 2007 tax? (Form 1040, Line 46.)
0<=X< $2500 4 15.38%
2500<=X<5000 3 11.54%
5000<=X<10,000 2 7.69%
10,000<=X<15,000 1 3.85%
15,000<=X<20,000 3 11.54%
20,000<=X<25,000 0 0%
X>=$25,000 13 50.00%
Voters: 26. You may not vote on this poll

Reply
 
Thread Tools Display Modes
Poll- How Much Tax in 2007?
Old 04-09-2008, 10:09 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
Poll- How Much Tax in 2007?

I am paying eay more tax in retirement than I ever paid working, at least in nominal $, and I have yet to draw from an IRA or take any SS. And our tax rates are reputed to be low.

This poll is for retired singles; I'll post another for retired marrieds. You working people are making so much money I won't bother you with what would likely be a very painful exercise.

Well, apparently there is no way to edit a poll- I meant line 63, not line 46.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-10-2008, 06:57 AM   #2
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: west bloomfield MI
Posts: 2,223
Don't fully understand, my AGI was 103k, taxable income 62k.... 41k of deductions. Married filing jointly.
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Old 04-10-2008, 07:49 AM   #3
Gone but not forgotten
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
Okay I got out the dreaded tax return and my tax bill was slightly over $2600 . The thing that kept mine low was $11,000 in deductions and since I worked occasionally last year I could still deduct $5,000 for an IRA , plus I had a long term loss of $3,000.
Moemg is offline   Reply With Quote
Old 04-10-2008, 08:02 AM   #4
Thinks s/he gets paid by the post
happy2bretired's Avatar
 
Join Date: Mar 2007
Location: Nebraska
Posts: 1,543
My line 63 is $1,471 and I also had a lot of deductions this year as well as my brokerage firm balanced out gains with losses so I'm sure that helped too. I get a government pension so that was part of my income along with monthly payments from my investments.

My accountant over estimated my taxes for last year due to the financial chaos that was due to my husband's death. So...I'm getting $10,000 back this year from Federal and state. Yeah!
happy2bretired is offline   Reply With Quote
Old 04-10-2008, 08:10 AM   #5
Thinks s/he gets paid by the post
happy2bretired's Avatar
 
Join Date: Mar 2007
Location: Nebraska
Posts: 1,543
Are you sure you want line 63? If you take into consideration the amount that I have deducted from my pension check, that's another $3,564 on line 64. So, I guess my total is $5,035. That make sense?
happy2bretired is offline   Reply With Quote
Old 04-10-2008, 08:25 AM   #6
Thinks s/he gets paid by the post
happy2bretired's Avatar
 
Join Date: Mar 2007
Location: Nebraska
Posts: 1,543
Hmmm...now I'm confusing myself. Dummy...I'm getting some of it back....so I'm confused.:confused:
happy2bretired is offline   Reply With Quote
Old 04-10-2008, 08:48 AM   #7
Gone but not forgotten
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
Line 63 on mine is still $2,600. I paid estimated last year and had tax withheld from my pension so I got a small refund . I have not touched my IRA and will probably not touch it until required .
Moemg is offline   Reply With Quote
Old 04-10-2008, 09:35 AM   #8
Full time employment: Posting here.
 
Join Date: Apr 2006
Posts: 944
I payed a boatload this time because of the sale of some investment property. Could have been alot worse -
if Obama gets in and raises capital gains to 30% as he says he plans to......
__________________
Freed at 49. You only live once - live it
Donzo is offline   Reply With Quote
Old 04-10-2008, 11:49 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
There is a huge spread, isn't there? My pretty big bill is a result of having realized capital gains in taxable accounts.

Like Donzo says, taking them now may prove to be a reasonable move depending on what comes next.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 04-10-2008, 12:09 PM   #10
Full time employment: Posting here.
Patrick's Avatar
 
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
Quote:
Originally Posted by Donzo View Post
I payed a boatload this time because of the sale of some investment property. Could have been alot worse -
if Obama gets in and raises capital gains to 30% as he says he plans to......
Sell all your capital right after the election . . .
__________________
Retired in 2006 at age 49.

"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
Patrick is offline   Reply With Quote
Old 04-10-2008, 12:25 PM   #11
Thinks s/he gets paid by the post
FIRE'd@51's Avatar
 
Join Date: Aug 2006
Posts: 2,433
Quote:
Originally Posted by haha View Post
My pretty big bill is a result of having realized capital gains in taxable accounts.
So long as they were LT, you are still putting at least 85 cents in your pocket for each 15 cents you send to the Feds. I don't see how you could do much better than that.
FIRE'd@51 is offline   Reply With Quote
Old 04-10-2008, 02:57 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
Quote:
Originally Posted by FIRE'd@51 View Post
So long as they were LT, you are still putting at least 85 cents in your pocket for each 15 cents you send to the Feds. I don't see how you could do much better than that.
True, and they were entirely LT. Some ST that was offset by ST losses from expired index puts.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 04-10-2008, 05:14 PM   #13
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 159
Perhaps a better poll would be taxes as a % of AGI. Still working and our Fed tax has hovered around 18.5% of AGI. Live in FL so no state hit.

We've plugged 18% into our retirement spreadsheet. Hopefully, this is adequate though I sure see higher taxes in our future - at least the next four years.
BoutDone is offline   Reply With Quote
Old 04-10-2008, 05:48 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,001
We started paying way more taxes as soon as we retired. This was a) because of realized capital gains as we diversified from company stock and b) because we diversified into a mutual fund mix that generates distributions from equities and bonds.

Also most years we have realized enough in LT cap gains or LT cap gains distributions to cause us to pay AMT rates on non-LT income.

We sure were tax efficient before retiring! Much less so now.

Audrey
audreyh1 is offline   Reply With Quote
Old 04-11-2008, 06:44 AM   #15
Thinks s/he gets paid by the post
FIRE'd@51's Avatar
 
Join Date: Aug 2006
Posts: 2,433
Quote:
Originally Posted by audreyh1 View Post
We started paying way more taxes as soon as we retired. This was a) because of realized capital gains as we diversified from company stock and b) because we diversified into a mutual fund mix that generates distributions from equities and bonds.

Also most years we have realized enough in LT cap gains or LT cap gains distributions to cause us to pay AMT rates on non-LT income.

We sure were tax efficient before retiring! Much less so now.
I'm not sure I understand this. First of all, you are only paying a maximum rate of 15% on LT gains. This must be much less than what your marginal rate was when you were working.

With regard to the AMT, why wouldn't you only take enough LT cap gains in a given year to stay just below the threshold that triggers the AMT?

Finally, I thought private banks allowed their high net worth clients to do swaps to get diversification, e.g. swap the return on company stock for the return on the S&P 500 or some combination of the S&P 500 and bonds. This way you avoid selling large amounts of stock and incurring large capital gains taxes, but still achieve the desired diversification.
FIRE'd@51 is offline   Reply With Quote
Old 04-11-2008, 08:48 AM   #16
Full time employment: Posting here.
cardude's Avatar
 
Join Date: Feb 2006
Posts: 599
My percentage of tax paid (line 63 / line 38 ) was 26.1%. How does that compare?

I'm still working and still have a pretty high income............My line 38 has 120K in LT capital gains in it.
cardude is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Oh come on - a 44% tax increase for 2007? whitestick FIRE and Money 19 02-14-2008 06:46 PM
2007 tax numbers Martha FIRE and Money 6 11-27-2007 01:44 PM
ERF Market Sentiment Poll: 2007 Q4 twaddle FIRE and Money 1 11-07-2007 08:25 PM
Tax-Cut, for 2007 Sundance Kid Other topics 12 02-11-2007 10:24 AM
2007 Tax Rate Schedules mickeyd FIRE and Money 1 11-21-2006 04:10 PM

» Quick Links

 
All times are GMT -6. The time now is 02:23 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.