View Poll Results: What is your effective income tax rate
|
0-4.99%
|
|
19 |
13.38% |
5.0-9.99%
|
|
28 |
19.72% |
10.0-14.99%
|
|
33 |
23.24% |
15.0-19.99%
|
|
25 |
17.61% |
20-24.99%
|
|
18 |
12.68% |
25% or more
|
|
19 |
13.38% |
|
|
Poll:What's your 2020 effective tax rate?
01-12-2021, 06:26 PM
|
#1
|
Full time employment: Posting here.
Join Date: Aug 2019
Posts: 691
|
Poll:What's your 2020 effective tax rate?
This is just my curiosity. It seems people know what their tax refund or bill is. They also probably know what tax bracket they are in. But it takes a tiny bit of arithmetic to figure your effective tax rate = Total tax (line 24) / Total income (line 9). Mine is 5.74%.
Computing it as I've described admittedly omits non-taxable income such as disability, tax-exempt interest, etc. But since tax season is starting, we'll have consistent numbers at hand for those inclined to post responses. Thanks.
__________________
--At what age does spending less now in order to have more later stop making sense?
|
|
|
|
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!
|
01-12-2021, 06:34 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,204
|
I haven't done my return yet, but based on my Excel model which I believe to be spot on I'll have a 1.56% effective rate (tax/total income) and a 10% ordinary income marginal tax rate and 15% preferenced income marginal tax rate.... but this is an unusual year for me.
My ordinary taxable income was only $33 because I botched my tIRA witdrawals for federal and state withholding by a little bit... so my ordinary tax was only $3. Meanwhile, my stock sales filled up the 0% LTCG bracket and spilled over a little.
Usually, I have mostly ordinary income from my pension and Roth conversions. I think my effective rate in 2021 will be about 8.5% and I'll be at the top of the 12% tax bracket. If I expand my Roth conversions into the 22% tax bracket then the effective rate will creep up some.
Above is federal only. 2020 we we part-year residents of Vermont and Florida... 2021 Florida.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
01-12-2021, 06:50 PM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Apr 2008
Posts: 1,992
|
Quote:
Originally Posted by pb4uski
I think my effective rate in 2021 will be about 8.5% and I'll be at the top of the 12% tax bracket.
|
Pretty much describes our tax situation for 2020. Spreadsheet calculates an effective rate of 8.64% for us.
|
|
|
01-12-2021, 06:59 PM
|
#4
|
Recycles dryer sheets
Join Date: Aug 2014
Posts: 326
|
Quote:
Originally Posted by statsman
Pretty much describes our tax situation for 2020. Spreadsheet calculates an effective rate of 8.64% for us.
|
Same here (though not sure of the exact effective tax rate).
__________________
“It's a terrible thing, I think, in life to wait until you're ready. I have this feeling now that actually no one is ever ready to do anything. There is almost no such thing as ready. There is only now. And you may as well do it now. Generally speaking, now is as good a time as any.” - Hugh Laurie
|
|
|
01-12-2021, 07:14 PM
|
#5
|
Administrator
Join Date: Apr 2006
Posts: 22,923
|
6.33% (federal). A fair amount of long term capital gains at 0% helped.
__________________
Living an analog life in the Digital Age.
|
|
|
01-12-2021, 07:16 PM
|
#6
|
Recycles dryer sheets
Join Date: Nov 2012
Posts: 226
|
Are you talking just federal or federal + state? My state is much higher than my federal since I retired.
|
|
|
01-12-2021, 07:18 PM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Apr 2012
Location: Nashville
Posts: 2,504
|
Traveling this month, so don't have precise number on hand, but just less than 19% (Roth conversions to top of 24% bracket)
__________________
OMY * 3 2ish Done 7.28.17
|
|
|
01-12-2021, 08:16 PM
|
#8
|
Full time employment: Posting here.
Join Date: Aug 2019
Posts: 691
|
Quote:
Originally Posted by geeky_grrl
Are you talking just federal or federal + state? My state is much higher than my federal since I retired.
|
I was thinking just federal, since states with low income tax get you with sales or property tax instead...
__________________
--At what age does spending less now in order to have more later stop making sense?
|
|
|
01-12-2021, 08:22 PM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
|
My Federal effective was 18% last year, with pension contributing the majority of that. Dont remember state rate.
|
|
|
01-12-2021, 08:34 PM
|
#10
|
Recycles dryer sheets
Join Date: Nov 2012
Posts: 226
|
My federal was around 3% last year and I think I'm going to be in the same ballpark this year. I don't bother with real numbers until I get my 1099s. The 0% capital gains bracket keeps my federal taxes low.
|
|
|
01-12-2021, 09:03 PM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
|
I haven't received my Turbo Tax disc yet. Or any of the needed inputs. No 1099, no SS, no cap gain or dividends...
I'll be back in April.
|
|
|
01-12-2021, 09:21 PM
|
#12
|
Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
|
3% sounds really good but the ACA is almost like another income tax. This year I gave more to the ACA than the tax man. The good news for me is that is only temporary.
|
|
|
01-12-2021, 10:24 PM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,863
|
0.0084% based on my pro forma estimate. This year I chose to Roth convert just enough to absorb all of my non-refundable tax credits. It's not 100% clear to me if that was the best option, but it wasn't the worst.
It seems to me that for the next few years as my kids finish college and I am on the ACA, that the marginal rate is really rather high at a fairly low AGI number because I have to add in loss of ACA subsidy and loss of FAFSA EFC ~ 53% if I did my math right for federal + state + ACA + EFC. Even with federal + state + IRMAA at age 72 with RMDs and 85% SS, my rate will be lower than that then (about 37%).
When it no longer affects my kids' college, I'll convert more - tentatively planning on top of 400% FPL.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
|
|
|
01-13-2021, 04:22 AM
|
#14
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,197
|
Since I manage my MAGI for ACA purposes and wish to hit the sweet spot on the Silver plan, my federal (and FLA state) rate is zero. The medical savings are worth more than Roth conversions at this pre Medicare age.
__________________
TGIM
|
|
|
01-13-2021, 08:15 AM
|
#15
|
Recycles dryer sheets
Join Date: Jan 2019
Location: Fort Worth
Posts: 99
|
~20% effective tax. Roth conversions to the top of the 24% bracket.
__________________
Retired Feb 2019 at 57 years of age.
|
|
|
01-13-2021, 08:35 AM
|
#16
|
Recycles dryer sheets
Join Date: Jan 2017
Posts: 155
|
Total of 19% Federal (15%) and state (4%) effective tax rate. IRA withdrawals of 50K and Roth conversions to near 22%. DW also got paid for 18K for estate trustee fee.
|
|
|
01-13-2021, 08:56 AM
|
#17
|
Thinks s/he gets paid by the post
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,708
|
Fed 23% State 9% (mostly Roth conversions, a bit of SS)
__________________
learn, work, save, invest, fire
|
|
|
01-13-2021, 08:57 AM
|
#18
|
Recycles dryer sheets
Join Date: Jun 2010
Location: Southwest Florida
Posts: 470
|
How is effective tax rate relevant? Marginal tax rate is the significant number.
Gill
|
|
|
01-13-2021, 09:02 AM
|
#19
|
Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,975
|
Can't participate in the poll. With state and federal credits my 2021 income taxes are below zero by several thousand$$$$.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
|
|
|
01-13-2021, 09:10 AM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,304
|
Quote:
Originally Posted by SnowballCamper
This is just my curiosity. It seems people know what their tax refund or bill is. They also probably know what tax bracket they are in. But it takes a tiny bit of arithmetic to figure your effective tax rate = Total tax (line 24) / Total income (line 9). Mine is 5.74%.
Computing it as I've described admittedly omits non-taxable income such as disability, tax-exempt interest, etc. But since tax season is starting, we'll have consistent numbers at hand for those inclined to post responses. Thanks.
|
Not sure about those line numbers but we are at 16% tax liability/AGI but 13.8% tax liability/taxable income. Maybe .5% lower with muni bond interest.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|