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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%
Voters: 142. You may not vote on this poll

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Poll:What's your 2020 effective tax rate?
Old 01-12-2021, 06:26 PM   #1
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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.
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Old 01-12-2021, 06:34 PM   #2
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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.
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Old 01-12-2021, 06:50 PM   #3
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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.
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Old 01-12-2021, 06:59 PM   #4
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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).
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Old 01-12-2021, 07:14 PM   #5
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6.33% (federal). A fair amount of long term capital gains at 0% helped.
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Old 01-12-2021, 07:16 PM   #6
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Are you talking just federal or federal + state? My state is much higher than my federal since I retired.
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Old 01-12-2021, 07:18 PM   #7
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Traveling this month, so don't have precise number on hand, but just less than 19% (Roth conversions to top of 24% bracket)
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Old 01-12-2021, 08:16 PM   #8
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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...
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Old 01-12-2021, 08:22 PM   #9
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My Federal effective was 18% last year, with pension contributing the majority of that. Dont remember state rate.
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Old 01-12-2021, 08:34 PM   #10
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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.
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Old 01-12-2021, 09:03 PM   #11
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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.
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Old 01-12-2021, 09:21 PM   #12
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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.
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Old 01-12-2021, 10:24 PM   #13
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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.
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Old 01-13-2021, 04:22 AM   #14
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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.
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Old 01-13-2021, 08:15 AM   #15
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~20% effective tax. Roth conversions to the top of the 24% bracket.
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Old 01-13-2021, 08:35 AM   #16
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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.
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Old 01-13-2021, 08:56 AM   #17
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Fed 23% State 9% (mostly Roth conversions, a bit of SS)
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Old 01-13-2021, 08:57 AM   #18
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How is effective tax rate relevant? Marginal tax rate is the significant number.

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Old 01-13-2021, 09:02 AM   #19
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Can't participate in the poll. With state and federal credits my 2021 income taxes are below zero by several thousand$$$$.
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Old 01-13-2021, 09:10 AM   #20
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Quote:
Originally Posted by SnowballCamper View Post
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.
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