2024 effective tax rate

[NgineER]

11.7% federal and 5.75% state.

Marginal tax rate 24%, first year with catch-up contributions, should I throw them to t-401(k)? I'm thinking so, but had started doing them as Roth 401(k) just because I could throw some more money at Roth's that way. My Roths is at $1.1M and tax deferred are at $1M. If I contribute the catch-up to tax deferred, they will be equal weight at retirement in five years at about $1.7M assuming contributing money plus 7% return.

Looking for validation from the broader group here as you have more experience in this area.

 

[rkser]

Effective Tax Rate as per Turbo Rax 15%, marginal 24%
We are retired, Roth Conversions add up

 

[NeilDH]

$59,000 AGI, $30,000 taxable, 5.39% federal effective tax rate. About 4.6% for state. Part of the year we had severance income. Going for 0% federal tax rate in 2025, and really no reason not to get that.

 

[523HRR]

Tax / AGI = 26.1%

 

[Koolau]

Tax / AGI = 26.1%

I think we have a winner. Thanks for your support.

 

[copyright1997reloaded]

Fed Tax/AGI = 16.0%. This does not include additional medicare $ due to IRMAA.
Sate 5.1%.

 

[jebmke]

9.6%, including NIIT (but FTC offset most of the NIIT this year).

 

[Koolau]

9.6%, including NIIT (but FTC offset most of the NIIT this year).

That's pretty amazing considering NIIT. But shouldn't you also count the Foreign Tax actually paid as well? Just asking.

 

[RetireBy90]

2024 paid 18% Fed and State combined. Marginal 22%. Been pretty consistent past couple years.

 

[jebmke]

That's pretty amazing considering NIIT. But shouldn't you also count the Foreign Tax actually paid as well? Just asking.

Good question. Haven't considered that. Hav to think how that fits.

I think the cleanest approach might be to consider the FTC as a Federal refund and not include it as a reduction of tax liability.

 

[Koolau]

Good question. Haven't considered that. Hav to think how that fits.

I think the cleanest approach might be to consider the FTC as a Federal refund and not include it as a reduction of tax liability.

I'll have to think about that as well.

 

[NgineER]

$59,000 AGI, $30,000 taxable, 5.39% federal effective tax rate. About 4.6% for state. Part of the year we had severance income. Going for 0% federal tax rate in 2025, and really no reason not to get that.

It would be worth doing some roth conversions if you have any pretax money to make sure you minimize taxes over the long run.

 

[Dash man]

Mine was 12.84%, which is lower than I expected. We were able to deduct $174k for charitable donations this year. Roth conversions and capital gains were most of our income plus dividends and interest.

The IRS helped me correct an error on my return, so my actual effective tax rate for Federal is 14.06%.

 

[Koolau]

The IRS helped me correct an error on my return, so my actual effective tax rate for Federal is 14.06%.

Thanks for sharing. We need to have a better feeling about the IRS when we can find it. Most times, it seems to be in their favor (of course, If I screw up, that's on me). YMMV

 

[Semi-Retyrd]

Fed Tax/AGI = 3.27% No other taxes as I am a Nevada resident for tax purposes.

 

[Dash man]

Thanks for sharing. We need to have a better feeling about the IRS when we can find it. Most times, it seems to be in their favor (of course, If I screw up, that's on me). YMMV

I definitely made the error…a biggie!
Last year when I realized I was going to owe more tax, I went into EFTPS to change an upcoming payment. The system wouldn’t let me modify an existing payment, so I cancelled the upcoming quarterly payment and created a new one. Well, when I printed out my payment history to prepare my return this year, I quickly counted the total of the payments, missing the far right column where one item was marked “cancelled.” So I incorrectly added in the $10,000 scheduled payment that was cancelled to the total amount paid. My mistake. They could easily remedy that by showing a payments total by year, but I should have been more careful.

 

[Gumby]

Thanks for sharing. We need to have a better feeling about the IRS when we can find it. Most times, it seems to be in their favor (of course, If I screw up, that's on me). YMMV

About 40 years ago, I made a math error on my return. The IRS caught it and sent me a larger than expected refund. It was only about $25, but I appreciated it. They have a job to do, and they do it pretty well considering all the misdirected hatred thrown their way. If you don't like taxes, blame Congress, not the IRS.

 

[TickTock]

I made an error on our 2022 return. The IRS pointed out the extra income that we owed taxes on but was completely silent about the losses *on the same document* that reduced our taxes.

 

[APP01]

For 2024 FED taxes I had a penalty for underpayment due in part to work income, retiring, roth conversions and other income generating stuff. I paid the amount I thought was due on 4/10 and two weeks ago my DW and I both got letters from the IRS that they recalculated the penalty and we overpaid $166. This week received a check for $166.

Talk about being fast!