ratface
Recycles dryer sheets
- Joined
- Jan 13, 2009
- Messages
- 255
My tax bracket is 25%. My effective rate is 15%. Wondering how others are stacking up?
That was my point. First of all, my W-2 income was nearly $20,000 lower than my total income because of 401K and HSA contributions. Second of all, what's left is basically the AGI before other deductions and exemptions.However, that does not tell the WHOLE story as that is the tax rates on TAXABLE income. Taxable income is 60% of TOTAL INCOME (the other 40% of TOTAL INCOME is not taxable). This going to be another "IT DEPENDS" threads!
I never get to deduct charitable contributions since I have a small home (i.e. small property tax bill), no state income tax and no mortgage. I've been thinking about putting something like $10,000 into a charitable trust so I can itemize and get a deduction for most of it, then dole out some donations from that while I save up another batch of money for the next time I "reload" this account a few years later. That way, at least, I'd be able to write off most of my giving, even if in a roundabout way.Next year I won't unless I get really generous (charitable contributions) or my property taxes increase dramatically to equal the standard deduction for single filers.
I am totally pessimistic...I suspect Albany is poised to solve the problem for me - big education cuts will result in higher school taxes. My school district budget is out of control. Such is life.I never get to deduct charitable contributions since I have a small home (i.e. small property tax bill), no state income tax and no mortgage. I've been thinking about putting something like $10,000 into a charitable trust so I can itemize and get a deduction for most of it, then dole out some donations from that while I save up another batch of money for the next time I "reload" this account a few years later. That way, at least, I'd be able to write off most of my giving, even if in a roundabout way.
But right now I can't part with $10,000 of my emergency fund. Not in this economy and job market.
That was my point. First of all, my W-2 income was nearly $20,000 lower than my total income because of 401K and HSA contributions. Second of all, what's left is basically the AGI before other deductions and exemptions.
My federal tax bracket was 25%, but the total tax I paid was 12% of total income, 14.1% of AGI and a little over 17% of taxable income (AGI minus deductions and exemptions).
On the 401K, yes, but one can't calculate it without knowing future tax rates and income levels when I withdraw it.You still have a tax liability on the 401K and HSA, you are just not including it in your current calculations.
Sounds like one of those "mark to model" excuses to me. Lehman, Bear, AIG, ziggy29... Still a tax liability.On the 401K, yes, but one can't calculate it without knowing future tax rates and income levels when I withdraw it.
Right.On the HSA, there's no tax liability if you use it for its intended purpose.
See response above...If you withdraw it for non-medical purposes after age 65, see the 401K disclaimer.
Well, thanks for not saying "Madoff," anyway...Sounds like one of those "mark to model" excuses to me. Lehman, Bear, AIG, ziggy29...
Jeez, ziggy, I'd never say that. You're too nice a dog. Besides, madoff got busted an' you're still free.Well, thanks for not saying "Madoff," anyway...
I've heard that the "S" stands for "secure" -- those with pensions and retiree health coverage.I have been traveling and haven't been able to follow posts closely. Soooo, what is this "SIRED" acronym I am seeing? It isn't on the acronyms list (or at least not on the thread that listed acronyms that I found).