Toast
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Federal is 12.04%
Your 2023 effective tax rate
- Thread starter grasshopper
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target2019
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Line 24 will include the SE tax, yes. So you could use Line 22 (edited out 23) for the numerator if you want to exclude it.
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pb4uski
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More no than yes. QBI can apply without SE. And re Sch C, like any other employer, OASDI and Medicare taxes paid by the employer are deductible.
So to make SE comparable to outside employment I would just excluded SE taxe paid since they are effectively payroll taxes and not income taxes.
I completed $30K in Roth conversions last year or my Fed tax would have been zero. My Roth conversion actually caused a 14.2% tax rate on the conversion as it pushed almost half of my SS into taxable income but TT reports my overall tax rate as:
Fed 8.0%
State 0%
DGF will end 8 years on ACA this year so can finally tap her tax deferred accounts without fear of losing major subsidies this year due to the repayment caps. Her tax rate for 2023:
Fed 1.3%
State 0%
Fed 8.0%
State 0%
DGF will end 8 years on ACA this year so can finally tap her tax deferred accounts without fear of losing major subsidies this year due to the repayment caps. Her tax rate for 2023:
Fed 1.3%
State 0%
rwdflynavy
Recycles dryer sheets
12.1%
Koolau
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Oops. I did it wrong. Mine's not 12% but just under 5% (for '22.)
Don't forget all the other taxes we pay. Property tax, gas tax, sales tax, fees, the list goes on. One of these days I'd like to calculate my overall gross tax rate. I imagine that would only tick me off.
Here's what I'd like to see: Itemize each of those state, federal and local taxes and fees on one document. We'd know exactly where the money is going, and who's got their hands in our pockets. Send us the bill once a year...
The day before election day.
Problem solved. You're welcome.
Here's what I'd like to see: Itemize each of those state, federal and local taxes and fees on one document. We'd know exactly where the money is going, and who's got their hands in our pockets. Send us the bill once a year...
The day before election day.
Problem solved. You're welcome.
My to date lifetime effective tax rate is 24% for Income, employee share of SS, SE, Sales, and Property. That misses state tax before I moved to FL but my earnings were pretty meager then. I also don't have sales tax prior to 2005 when I started tracking it. Buried Fuel/Utility etc have not been captured in my records. Over my lifetime, my taxes paid were equal to 51% of the money I spent on myself so for every dollar I spent on me I paid an additional 51¢ in taxes. -it would actually be a bit higher given the missed and hidden taxes.
Of course, all that ignores the deferred income taxes I'll eventually owe as I withdraw.
aaronc879
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No exactly sure how to figure this out. If just taxes due divided by AGI then it's 11.5%. However my AGI was just $1782. I got a big Homestead credit so my refunds divided by my AGI give me a -64% tax rate. One small benefit of being relatively poor. I would still trade with anyone on here though.
copyright1997reloaded
Thinks s/he gets paid by the post
iloveyoga
Thinks s/he gets paid by the post
10.68% federal income tax.
Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
HMMmmmm. I've been "rich" and I've been "poor." Rich is better - even if I have to pay ridiculous taxes. At least I'm glad you do well on the tax game.
Humbooster
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Using the Line 24 / Line 11 methodology, for 2023: 6.2%.
Have not done state yet.
Have not done state yet.
Ready-4-ER-at-14
Full time employment: Posting here.
HMMmmmm. I've been "rich" and I've been "poor." Rich is better - even if I have to pay ridiculous taxes. At least I'm glad you do well on the tax game.
I kind of agree with you Koolau and since I view income and investing as a competitive game complete with bragging rights, I see how we can see silver cloud linings no matter where we are in this race.
Geez I pay no income tax and get all these benefits, because I work the system as my job!
Gee I won with the highest AGI percentage number here, but at least I was in the highest tax band and I worked the system to keep the taxes as low as i could. (or not at all ; ) )
Gee I was in the middle of the pack but at least I didn't have to work the system. as hard! : )
Anyhow is fun to imagine why people choose the strategy they have. I think for me I saw where roughly we were and tried to make the best situation with the cards we had been dealt and with what a stash we had and projected to have in the future. And I may be pollyannish, but I imagined a comfortable retirement and not a spend down to gruel and 3-day old bread.
Dash man
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I made a huge entry error on a spreadsheet that I use to calculate estimated tax payments. We did three Roth conversions and in one entry I inadvertently entered the total of all three conversions. Add to that a large tax credit we’re getting because of a late summer decision to install solar on our house. We’re getting a huge refund this year.
We did some Roth Conversions, so were 18.5% of AGI for federal income tax, but I also worked part time, so adding taxes for SS and medicare, boosts it to 22.2%.
If you look at the sum of all taxes compared to our after-tax spend (taking a SWAG at sales taxes), our total taxes were 1.4 times our after-tax spending. Apparently we need a lot of governing.
If you look at the sum of all taxes compared to our after-tax spend (taking a SWAG at sales taxes), our total taxes were 1.4 times our after-tax spending. Apparently we need a lot of governing.
Koolau
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MuirWannabe
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Koolau
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Wow, that is amazing. Heh, heh, considered moving??
We count ourselves fairly fortunate when it comes to taxes other than Federal. We do have the little taxes buried in the charges for utilities, etc. Then there are car tags which I consider mostly a "tax." But the state exempts a lot of our income (like pension and SS.) Our RE taxes are less than $2K/year (a lot less.) Our "sales tax" (actually a General Excise Tax - aka GET) is about 4.7% - but it's on just about everything (I think pharmacy and medical visits/procedures are exempted.) Also the GET is somewhat buried in the costs we pay before point of purchase, so the 4.7+ % is actually somewhat higher but impossible to tease out.
So, much to our surprise, our other-than-Federal taxes are lower than when we lived in the heartland. Go figure. YMMV
Out of Steam
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9.1% Federal
3.7% State (Virginia)
Because of mandatory 20% withholding on two 401(k) accounts, we'll be getting a large Federal refund. This will improve in 2024 with my wife collecting Social Security for a full year.
3.7% State (Virginia)
Because of mandatory 20% withholding on two 401(k) accounts, we'll be getting a large Federal refund. This will improve in 2024 with my wife collecting Social Security for a full year.
