Poll: Your "average" federal tax rate FY 2024

[almost there]

I see a hand full of winners in the 9% and less category. Planning to get there myself soon. Congrats!

 

[pb4uski]

I dunno... if I had more income I wouldn't mind paying more. If we had $200k of ordinary income and $100k of capital gains in 2024 that would be less than 15% (22% marginal).

 

[Dtail]

I dunno... if I had more income I wouldn't mind paying more. If we had $200k of ordinary income and $100k of capital gains in 2024 that would be less than 15% (22% marginal).

Same here.

 

[COcheesehead]

1040 income 12.83% Total income 5.31%

 

[almost there]

Yes, you can donate money to the U.S. government, specifically to reduce the public debt, and you can do so through various methods, including online via Pay.gov or by mail.

 

[scrinch]

Top Federal tax bracket is 37%, but don't have to go that high to get effective rate over 20%.
Top of 32% bracket/bottom of 35% bracket is an AGI of approximately $517k, MFJ, with a tax around $111k which is 21.5%.

But that's assuming all Ordinary Income. If a lot of that income was from Qualified Dividends, the tax and effective rate would be less...

Or a lot of that income could be subject to NIIT and the effective rate could be higher...

 

[pb4uski]

1040 income 12.83% Total income 5.31%

What is the difference in the denominator? Muni bond interest? Non-taxable SS? Other?

 

[COcheesehead]

What is the difference in the denominator? Muni bond interest? Non-taxable SS? Other?

No SS, but lots of tax free.

 

[5Miler]

Per TurboTax my Effective Tax Rate is 6.85%. I have been Roth converting to the top of the 12% bracket for single filers so getting effected by the proverbial tax torpedo due to drawing SS. I suck it up in the 12% bracket but unwilling to pay the piper in the 22% bracket until I have to with RMDs starting next year.

I ain't complaining.

 

[flyingaway]

14.27%, due to large Roth conversion.

 

[Out-to-Lunch]

Last year (2023) was a capital gains harvesting year, for a 3% effective rate. This year (2024) was a beaucoup Roth conversion year, for a 18.3% effective rate.

 

[RetMD21]

Or a lot of that income could be subject to NIIT and the effective rate could be higher...

Higher than ordinary income?

 

[old medic]

Fed 8.1% State 1.6%

 

[target2019]

Effective Fed Rate is 7.58% for 2024.

Years 2020, 2021, 2022, 2023, 2024
Brkts 12%, 12%, 22%, 22%, 12%
EffR% 7.62%, 7.38%, 10.74%, 10.19%, 7.58%

This year 2025, probably 12%. But future years will include RMD(s), so 22% MFJ Fed bracket until it's 24% for her.

NJ State income tax is negligible. Last two years it's been under 0.50% effective rate.

 

[pb4uski]

14.27%, due to large Roth conversion.

Yeah, I get it and have similar situation. Our tax rate would be nil absent Roth conversions. While I understand that Roth conversions need to be included in income on our tax return since we've never paid tax on that income, it just doesn't feel right to consider Roth conversions arising moving money from one pocket to the other as income for this effective tax rate calculation.

 

[TheWizard]

Higher than ordinary income?

Not likely, unless most of your investment income is taxed as Ordinary Income, like bond interest.
If most of your taxable investment income is Qualified Dividends, then 15% + 3.8% NIIT = 18.8% total tax which is lower than Ordinary Income marginal rates at that level...

 

[Lee94joyce]

Assuming you mean effective tax rate, I am at 13.75%

 

[indiajust]

ran a report in quicken, my total tax impact since end of 2015, everything except sales tax and fuel tax... just over 13k. same report puts income at 630k (includes tax free account gains). so I am running just over 2% for the last decade.