How much do you pay in income taxes(State and Federal) each year?

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0 to $25k depending on Roth conversions.

At this point, taxes are an "optional" expense (BUT, they will be paid some day).
 
I pay about $650 to the state.
If it makes you feel better, I paid over $100K in income taxes one year while working for mega-corp. Salary, commission, and a ton of reimbursed travel expenses that were treated as income (because of sustained travel to the same area for more than a year). Mega-corp reimbursed me for the taxes on the travel, but then that was considered taxable income. On top of that I got the pleasure of paying AMT taxes and even worse, having to figure out taxes both ways due to the AMT differences -- some of which the tax software didn't support so I had to do it by hand. :mad:

ETA: I also lost (phased out) exemptions etc. What a mess.

ETA2: Even now, with my low paying second career, if I were paying $750 a year to the state I would be DANCING.
 
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right at 19% of all TIRA withdrawals and conversions (unless we bump up and fill the 32% bracket this year....) No state income tax.
 
We used to pay back in 2013, 4.9% to the State.
Then I learned they don't tax retirement money , so I'm letting the taxable accounts ride and pulling from IRA.
Now we pay 1.1% to the State as can't avoid dividends and interest and other odd income.
Pulling from the State is saving us paying taxes now and will reduce our tax torpedo(s). (RMD , and hopefully much later, suvivorship).
 
I max out up to the top of the 12% bracket. I usually go a little over into the 24% bracket, but not by much. State is 4.25%. I frequently contemplate upping my Roth conversations further into or even maxing out the 24% bracket, but the tax bite is just too hard to take. I know hope isn’t a strategy, but it is only hope that I don’t get burned too bad when my RMD’s kick in.
 
We used to pay back in 2013, 4.9% to the State.
Then I learned they don't tax retirement money , so I'm letting the taxable accounts ride and pulling from IRA.
Now we pay 1.1% to the State as can't avoid dividends and interest and other odd income.
Pulling from the State is saving us paying taxes now and will reduce our tax torpedo(s). (RMD , and hopefully much later, suvivorship).


I thought money taken from a conventional IRA was taxed as ordinary income.
 
Manage my MAGI for ACA purposes, so no Federal tax and there is no state tax.
For the DGF, we Roth convert to the top of the 12% bracket.
 
2020 was an outlier and I'm way into the 35% bracket
2010-2019 I was just into the 32% bracket
Going forward in retirement I'll convert to halfway into the 24% bracket.
Counting no FICA in retirement, it is going to be a pretty big tax cut going forward but still a hefty bill.
I live in a no tax state.
 
Each year gets better, and apparently they tax me for that!

I'm using effective rates of 12% Fed and 3% State in my estimates. This is somewhat higher than measured, but I'm ready for 2025 Fed rate increases.
 
In 2019 I paid $0, I used all LTCGs. In 2020 I'll pay about 4.25%, I did some Roth conversions. No state tax here.
 
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Too much. We’ll be writing a large check in April.
 
We are part way into the 24% bracket for federal, plus an additional 3.8% on investment income. We pay 7.15% in state taxes. We are in the 2nd tier of IRMAA for Medicare premiums and expect to jump into the 3rd tier next year, if all goes according to projections.

We will get back both stimulus payments as credits on our returns for 2020, as we did not take RMD's last year. We don't need the money and will probably increase our giving because of it.
 
After seeing my income spike the last few years due to large cap gain distributions from a stock fund, I switched to a stock index fund to eliminate them. That not only reduced my income taxes but also put me back on the ACA premium subsidy train.

For 2020, I paid 3.7% in state income taxes and 3.0% in federal income taxes.
 
Based on my spreadsheet, it will be around $22,800 federal, $0 state. We are doing big Roth conversions.
 
What I know is that I pay more in income taxes than my sister even makes in total working. Granted she is not in high paying job, but I pay a lot more than I like. I typically avg around 14% to fed and 3-4% to state once taxes are all done.
 
Total Income Taxes = 20.78% ->$11,614. Marginal IRS Rate still 22%. Will be 23.85% or $16,191 next year as I'm claiming SSA.
The way I see it, I still get to keep 76c of the next $1 so that $1 is still worth it. Not complaining
 
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My major source of income is from an installment sale on my business. The principal portion is LTCG.


Federal tax is just $2,000 or so. The state of MN treats LTCG as ordinary income, so I pay them around $5,000.
 
2019 Effective rates were 6.7% Fed and 4.8% State

Managing MAGI for ACA Subsidy purposes.
 
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