almost there
Thinks s/he gets paid by the post
- Joined
- Sep 24, 2008
- Messages
- 1,093
I see a hand full of winners in the 9% and less category. Planning to get there myself soon. Congrats!
Same here.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).
Or a lot of that income could be subject to NIIT and the effective rate could be higher...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...
What is the difference in the denominator? Muni bond interest? Non-taxable SS? Other?1040 income 12.83% Total income 5.31%
No SS, but lots of tax free.What is the difference in the denominator? Muni bond interest? Non-taxable SS? Other?
Higher than ordinary income?Or a lot of that income could be subject to NIIT and the effective rate could be higher...
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.14.27%, due to large Roth conversion.
Not likely, unless most of your investment income is taxed as Ordinary Income, like bond interest.Higher than ordinary income?