Author Topic: How much do you pay in taxes?  (Read 8359 times)

MumRoars

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How much do you pay in taxes?
« on: October 13, 2017, 08:46:49 PM »
My husband and I have a joint gross pay of about $152,600. I'm projecting us paying around $25,850 in taxes - we usually get $3,000 in tax refund.

Things we are doing to help optimize taxes:
- Max out 401ks
- Max our TIRA and Roth
- Dependent Care Savings Account ($5000 taken out of paycheck tax-free towards daycare)

We have one dependent.

Anything else that I can do? Considering HSA but hesitating because we have a little one. We pay a little over $10,000 for health insurance for a family of three.

How are you guys doing?

Rhoon

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Re: How much do you pay in taxes?
« Reply #1 on: October 13, 2017, 09:09:56 PM »
I'm in the same boat. Will probably pay around $30K in federal taxes.

I'm looking at real estate to try and 1) develop alternative incomes and 2) create "paper losses"

Once you get through both 401Ks ($36K total) and both IRAs ($11K total), what remains is HSA.

SC93

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Re: How much do you pay in taxes?
« Reply #2 on: October 13, 2017, 09:34:30 PM »
I'll make you a deal..... you loan me that same $3000 you are loaning the government and I will split the profit we make from it each year. For real.... deal?

MrThatsDifferent

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SubmarineNavigator

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Re: How much do you pay in taxes?
« Reply #4 on: October 14, 2017, 07:26:24 AM »
Back when I was working, we bought Multi-Family-Residences [Tri-plex, four-plex, five-plex] properties, and filled them with tenants. Since I was deployed most of the time, it gave my wife something to keep busy. We bought one property at each duty station. As they built equity, they also provided great tax-sheltering over my salary income. We started doing this in 1985 and we continued until I retired in 2001. During that period [1985 - 2001] we reduced our income tax obligation to zero.

BTDretire

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Re: How much do you pay in taxes?
« Reply #5 on: October 14, 2017, 02:36:52 PM »
For 2016 we earned $108,000 (line 22) after all the adjustments I paid $872.
That's 0.8%, Sorry, If you just gulped!
  BTW, we are self employed and have some income as qualified dividends.
Here's a list of the adjustments,
Wrote off $3000 as a capital loss, HSA, $7,650, Deduct 1/2 of SS taxes $5,322,
SEP/IRA $13,982, Self employed insurance deduction $10,070, standard deduction, $12,600,
exemptions, $16,200, and finally a $3003 tax Credit.
 Then the one that makes me gulp is the SS tax, I paid $10,622 for both halves of the SS tax.
 Most years it's under 3% federal tax.

 Edit to add;
 I never expected to see $100k on my tax form. Combining our families SS earning records, I see out of 36 yrs married, we have  14 yrs under $30k and 21 yrs under $50k.
  My wife started a side hustle 16 years ago and it became our full time job, with a nice income bump.
« Last Edit: October 15, 2017, 07:27:19 AM by BTDretire »

MumRoars

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Re: How much do you pay in taxes?
« Reply #6 on: October 14, 2017, 03:49:32 PM »
I'll make you a deal..... you loan me that same $3000 you are loaning the government and I will split the profit we make from it each year. For real.... deal?

Yes - we definitely need to fix that :)

BTDretire

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Re: How much do you pay in taxes?
« Reply #7 on: October 15, 2017, 08:19:13 AM »
I'll make you a deal..... you loan me that same $3000 you are loaning the government and I will split the profit we make from it each year. For real.... deal?

Yes - we definitely need to fix that :)
I did even worse, I over paid by $6,571! I generally pay 100% of the previous year, I had two extra dependents* come back on my dole and a college credit that threw my quarterlies off.
* My kids, not dependent then my dependents.

NV Teacher

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Re: How much do you pay in taxes?
« Reply #8 on: October 15, 2017, 09:03:29 AM »
I pay $1000 a month for federal income tax and NV has no state personal income tax.

Slow&Steady

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Re: How much do you pay in taxes?
« Reply #9 on: October 16, 2017, 08:33:43 AM »
We installed solar panels in 2017, I expect that the 30% tax incentive that we get for those will wipe out our tax liability and some will carry forward to 2018.

Late 2016 we purchased an electric car, this wiped out our tax liability for 2016 but we kind of messed up as we were not able to fully utilize the incentive and it does not carry forward.

In 2018 we will have a 2nd biological child, increasing our dependents.  We also foster, the 2 boys we have with us now we will not be able to claim on taxes for 2017 but I anticipate that we will have them more than half the year in 2018 and be able to claim them next year.  Our dependents should increase by 3 for 2018.

My salary is in the $70k - $80k range and DH is self employed.  Some years he barely covers expenses and some years he has a $20k-$30k income.

TwoWorlds

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Re: How much do you pay in taxes?
« Reply #10 on: October 16, 2017, 03:37:31 PM »
We should pay around $60k in federal taxes this year.  $14,000 state.

starguru

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Re: How much do you pay in taxes?
« Reply #11 on: October 17, 2017, 08:09:10 AM »
We paid north of $200k in taxes in 2016 (fed state SS Medicare). Will probably pay similar this year.


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Giro

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Re: How much do you pay in taxes?
« Reply #12 on: October 17, 2017, 09:03:33 AM »
Total projected income is $321,800 and we will owe $35,868 in total federal taxes, $20,832 in SSA, $5442,15 in Medicare, $2442 in state tax and the BUMMER $6234 in CITY tax.

So, total income tax liability is $77,818.  That is 24.2%   I can't complain.

I am self-employed all year this year my husband has about $50,000 in military retirement income and another $90,000 in W2 income.   I contributed $49,000 to my i401K and my husband did his $18k 401k contribution.

In Ohio, small businesses have 0 tax liability on the first 250k of income and military retirement is non-taxable.

We have contemplated moving to a city with low tax liability when we retire.  Urban areas have lower property taxes and lower local taxes. 

GettingClose

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Re: How much do you pay in taxes?
« Reply #13 on: October 17, 2017, 10:37:24 AM »
A lot.  Fed/state/property taxes come to almost exactly 40% of our income, and even with professional help we can't figure out how to get it lower until one of us retires.  Soon, hopefully!
« Last Edit: October 18, 2017, 10:04:08 AM by GettingClose »

dude

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Re: How much do you pay in taxes?
« Reply #14 on: October 17, 2017, 11:03:38 AM »
$38,853 combined Fed and state total. Fed alone was $29,547. Worked out to a 12.42% effective fed tax rate, 16.33% overall rate.

Fomerly known as something

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Re: How much do you pay in taxes?
« Reply #15 on: October 17, 2017, 01:13:36 PM »
18% federally

32% adding in FICA, state, local and property taxes.

That is with maxing out my 401k and HSA.  I did have some extra capital gains last year due to the sale of my reluctant landlord property in a different state so I'm not sure how much of a difference that made.  The last time I looked I was at 25% all in on all taxes.

Goldielocks

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Re: How much do you pay in taxes?
« Reply #16 on: October 17, 2017, 01:22:16 PM »
About 33% in taxes, overall, (provincial, CPP, EI, federal) excludes property tax.   It was one reason for FIRE and readjusting where my income comes from to cover my limited expenses.   AND, this is on under $200k in total income, so not even in the top tax bracket yet.
« Last Edit: October 17, 2017, 01:26:09 PM by Goldielocks »

skip207

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Re: How much do you pay in taxes?
« Reply #17 on: October 17, 2017, 01:53:12 PM »
Interesting thread.

Of no help to this thread as its mostly US based but I am in the UK and we get good tax breaks as a small business owner (LTD).

BUT the tide is changing.  In the UK there has been a big push to shame people into paying tax (The Jimmy Carr effect!).  The govt has jumped on the bandwagon and gone after small businesses.  They are also going after contractors who use a limited company to use the tax system to their advantage (IR35). 

I don't know if this is happening in the US, but here its pushing prices up.  Inflation is slowly creeping up.

Its a complex situation but the net result is everyone pays more into the system, win win for the country I guess!


effigy98

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Re: How much do you pay in taxes?
« Reply #18 on: October 17, 2017, 02:52:02 PM »
16 to 18% on roughly 300k which includes ALL taxes including sales taxes.

HPstache

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Re: How much do you pay in taxes?
« Reply #19 on: October 17, 2017, 04:11:01 PM »
Should be $5,474 total for 2017 (federal, social security, medicare) on a $70K income.  Our Federal is only going to be $477
« Last Edit: October 17, 2017, 04:26:47 PM by v8rx7guy »

Acastus

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Re: How much do you pay in taxes?
« Reply #20 on: October 18, 2017, 09:46:19 AM »
Our AGI should be about 70k after scraping off 30k for 401k and HSA. I will do some tax gain harvesting, but that will not add to taxes. Federal taxes will be about 4k. Married + 1 kid.

marielle

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Re: How much do you pay in taxes?
« Reply #21 on: October 18, 2017, 09:54:52 AM »
Income is 60k, I pay about 14k in taxes and I'm expecting close to $0 refund hopefully. This includes deducting $5500 for my IRA and at least $500 in student loan interest I think.

Undecided

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Re: How much do you pay in taxes?
« Reply #22 on: October 18, 2017, 10:05:49 AM »
Income is 60k, I pay about 14k in taxes and I'm expecting close to $0 refund hopefully. This includes deducting $5500 for my IRA and at least $500 in student loan interest I think.

What taxes are you including here? That’s about twice the amount I’d expect for your federal income tax (assuming you’re single, not someone else’s dependent and can deduct your IRa contribution).

marielle

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Re: How much do you pay in taxes?
« Reply #23 on: October 18, 2017, 10:43:11 AM »
Income is 60k, I pay about 14k in taxes and I'm expecting close to $0 refund hopefully. This includes deducting $5500 for my IRA and at least $500 in student loan interest I think.

What taxes are you including here? That’s about twice the amount I’d expect for your federal income tax (assuming you’re single, not someone else’s dependent and can deduct your IRa contribution).

I'm claiming 4 deductions on my w4 and this is what my paycheck comes out to. When I add it up I'm paying just over $14k in taxes when I include state taxes as well. I'm not 100% sure I won't have a refund but that's what all the calculators say. Single, no dependents, not being claimed as a dependent, and no other deductions.

Goldielocks

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Re: How much do you pay in taxes?
« Reply #24 on: October 18, 2017, 10:47:42 AM »
Income is 60k, I pay about 14k in taxes and I'm expecting close to $0 refund hopefully. This includes deducting $5500 for my IRA and at least $500 in student loan interest I think.

What taxes are you including here? That’s about twice the amount I’d expect for your federal income tax (assuming you’re single, not someone else’s dependent and can deduct your IRa contribution).

I'm claiming 4 deductions on my w4 and this is what my paycheck comes out to. When I add it up I'm paying just over $14k in taxes when I include state taxes as well. I'm not 100% sure I won't have a refund but that's what all the calculators say. Single, no dependents, not being claimed as a dependent, and no other deductions.
I had one like that,  turns out that I had taxable benefits from my company (things like transit, company car use, accommodation while working at a location, parking benefits are considered taxable, so you still have to pay the tax).

Undecided

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Re: How much do you pay in taxes?
« Reply #25 on: October 18, 2017, 11:28:15 AM »
Income is 60k, I pay about 14k in taxes and I'm expecting close to $0 refund hopefully. This includes deducting $5500 for my IRA and at least $500 in student loan interest I think.

What taxes are you including here? That’s about twice the amount I’d expect for your federal income tax (assuming you’re single, not someone else’s dependent and can deduct your IRa contribution).

I'm claiming 4 deductions on my w4 and this is what my paycheck comes out to. When I add it up I'm paying just over $14k in taxes when I include state taxes as well. I'm not 100% sure I won't have a refund but that's what all the calculators say. Single, no dependents, not being claimed as a dependent, and no other deductions.
I had one like that,  turns out that I had taxable benefits from my company (things like transit, company car use, accommodation while working at a location, parking benefits are considered taxable, so you still have to pay the tax).

That could be, but if I were in marielle's shoes I'd do a dummy set of tax returns for this year (using 2016 forms or software, which will be pretty close) to figure out whether the withholdings are excessive, while there are still a couple of months left in the year to do something about it (I'd rather have that money in November and December than in April).

Or are you (marielle) also counting social security and medicare deductions in this $14,000?

Goldielocks

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Re: How much do you pay in taxes?
« Reply #26 on: October 18, 2017, 11:30:23 AM »
Wouldn't most US tax payers include SS and medicare in their taxes?  Heck a few people upthread included their property taxes, which if you don't have need to itemize, are significant.

marielle

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Re: How much do you pay in taxes?
« Reply #27 on: October 18, 2017, 11:37:42 AM »
Income is 60k, I pay about 14k in taxes and I'm expecting close to $0 refund hopefully. This includes deducting $5500 for my IRA and at least $500 in student loan interest I think.

What taxes are you including here? That’s about twice the amount I’d expect for your federal income tax (assuming you’re single, not someone else’s dependent and can deduct your IRa contribution).

I'm claiming 4 deductions on my w4 and this is what my paycheck comes out to. When I add it up I'm paying just over $14k in taxes when I include state taxes as well. I'm not 100% sure I won't have a refund but that's what all the calculators say. Single, no dependents, not being claimed as a dependent, and no other deductions.
I had one like that,  turns out that I had taxable benefits from my company (things like transit, company car use, accommodation while working at a location, parking benefits are considered taxable, so you still have to pay the tax).

That could be, but if I were in marielle's shoes I'd do a dummy set of tax returns for this year (using 2016 forms or software, which will be pretty close) to figure out whether the withholdings are excessive, while there are still a couple of months left in the year to do something about it (I'd rather have that money in November and December than in April).

Or are you (marielle) also counting social security and medicare deductions in this $14,000?

Yes I subtracted what my gross pay is from my actual net paycheck...I thought that's what others were doing.

If I add up only federal withholding it's $5900 provided my w4 is correct.

Normally I'd put 2 on my w4, but elected to put 4 since I'm funding a traditional IRA and would normally get a decent refund at 2 without any deductions.

wenchsenior

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Re: How much do you pay in taxes?
« Reply #28 on: October 18, 2017, 11:38:08 AM »
Technically SS and Medicare are taxes, but I never include them when I think about my tax rate.  I view them as insurance premiums.

Goldielocks

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Re: How much do you pay in taxes?
« Reply #29 on: October 18, 2017, 12:29:41 PM »
Technically SS and Medicare are taxes, but I never include them when I think about my tax rate.  I view them as insurance premiums.
Interesting,  I have had more than one forum conversation about CDN versus US taxes, where, at the end of it, I realized my US counterpart was including SS and Medicare on the US side, but not the Canada side...   you are the first I found on the US side that does it the other way.   It did not help that most of the on line tax calculators never include it for Canada, but usually do for the USA.

My small sample set is obviously wrong.  I will have to check assumptions before the debate begins.

Acastus

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Re: How much do you pay in taxes?
« Reply #30 on: October 18, 2017, 02:47:11 PM »
If we want to have a more meaningful discussion about taxes, we should fold in the SS and medicare taxes, also called FICA. Most workers pay more in FICA than in income taxes. Since the tax industry has convinced people that doing your own taxes is too complicated, many people do not even know what their tax obligation is. The breakdown for Federal tax receipts is, income tax 46.5%, FICA 33.5%, corporate 11%, other 9%. End rant.

I pay more in FICA than federal and state income taxes combined. It is my 2nd highest tax. Overall taxes on ~ 100k household income:

Property - 8.5k
FICA       - 7.5k
Fed         - 4k
State       - 3k
Total:       23k       

My main takeaway is my property taxes are ridiculous. I own a 4 BR / 2.5 Ba with 2 car garage in a nice town in upstate NY. Property taxes should be 1/2 what they are. The taxes are more than my mortgage, fer cryin' out loud.
« Last Edit: October 18, 2017, 03:00:20 PM by Acastus »

Goldielocks

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Re: How much do you pay in taxes?
« Reply #31 on: October 18, 2017, 03:25:58 PM »
If we want to have a more meaningful discussion about taxes, we should fold in the SS and medicare taxes, also called FICA. Most workers pay more in FICA than in income taxes. Since the tax industry has convinced people that doing your own taxes is too complicated, many people do not even know what their tax obligation is. The breakdown for Federal tax receipts is, income tax 46.5%, FICA 33.5%, corporate 11%, other 9%. End rant.

I pay more in FICA than federal and state income taxes combined. It is my 2nd highest tax. Overall taxes on ~ 100k household income:

Property - 8.5k
FICA       - 7.5k
Fed         - 4k
State       - 3k
Total:       23k       

My main takeaway is my property taxes are ridiculous. I own a 4 BR / 2.5 Ba with 2 car garage in a nice town in upstate NY. Property taxes should be 1/2 what they are. The taxes are more than my mortgage, fer cryin' out loud.

To derail further -- I agree about property taxes... when I looked at the different rates for property taxes for a typical 4 BR/2 ba home in suburbs around the country, the vast differences is astounding.

I found at that time, a low of $2500, for a city without too much spending on parks and recreation facilities, to $6000 for an older city with infrastructure problems, vacant/ defaulting homes in some areas and need for pricey snow removal and water treatment.   I looked in Canada and USA, so yes, the higher teacher salaries in Canada accounted for about $500/home difference compared to Texas.

Then one gets to NY state, property taxes are beyond the pale.  Have you looked into what your property taxes are being spent on?   Why it is so much more for the same set of basic services?

I also saw $9k/yr in california for smaller, older homes 1 hour outside of downtown areas... but the city was obviously paying for the reclaimed water irrigation system, fancy looking streets, and a whole overdose of policing...

FoundPeace

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Re: How much do you pay in taxes?
« Reply #32 on: October 19, 2017, 08:45:29 PM »
Zero federal income tax (sometimes I get paid for filing taxes— about $400 last year) for an income of $64k. My wife is staying home for now with our two little dependents. I am excited for when she goes back to work here in a few years and we can finally be in the $100k+ club. But for now it is nice to pay no income taxes.

I do pay $3k in state income taxes and $3k in property taxes though.


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kendallf

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Re: How much do you pay in taxes?
« Reply #33 on: October 20, 2017, 08:13:33 AM »
We paid ~$22k in Federal tax last year, and about $12.5k in FICA for a Federal tax rate of approximately 13%, and a FICA tax rate of approximately 7%.  Total ~20%.

A couple of things that struck me: one is, I had no idea what my effective tax rate was, or even what my total compensation was last year (I look at the W2 and it doesn't count or show the health insurance/HSA deductions in the gross numbers up top).  Second thing was the "ghost pay" I received as the employer share of my health insurance premiums.  That was worth $11.7k in additional compensation for me last year!

This is a tangent from the original topic, but my health care total costs last year (insurance premiums plus HSA contributions) were about $20k.  That is an approximate 11% "tax rate" for health care for two healthy adults and one very healthy 22 year old.  Single payer for a 10% tax hike?  I'd take it..
« Last Edit: October 20, 2017, 10:31:39 AM by kendallf »

PizzaSteve

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Re: How much do you pay in taxes?
« Reply #34 on: October 20, 2017, 08:40:00 AM »
I hate to be a broken record, but i really dont like these `what is your income/net worth' threads. 

Members of this forum can be attractive targets for identity theft, since we are committed to building wealth for financial indeoendence via a large stash, likely managed online.

One of the most common current scams is trying to steal a tax refund by filing fake taxes.  One of the ways the IRS (in the US) verified identity is to ask what you paid in taxes for the prior year. Another scam is to hack a brokerage account, sell your assets and buy thinly traded (easily manipulated) penny stocks the thieves know are worthless at high prices.

With the Equifax breach, someone may already have name, address, SSN and be chomping at the bit to link your post with your identity or learn more about your wealth to impersonate you better.  Please disguise your information to make it useless to hackers and thieves and edit posts that might out you as worth targeting.
« Last Edit: October 20, 2017, 08:42:42 AM by PizzaSteve »

Cwadda

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Re: How much do you pay in taxes?
« Reply #35 on: October 20, 2017, 09:54:22 AM »
Looking at these responses, most folks pay more in taxes than I take home in an entire year...lol

FoundPeace

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Re: How much do you pay in taxes?
« Reply #36 on: October 20, 2017, 02:17:55 PM »
@PizzaSteve
I think the IRS requires more exact numbers than most of us are giving here, but most of us like to share because there are very few people in real life who are interested in or comfortable sharing income, tax, and net worth information. I think tax fraud is a pretty low risk in this case.


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AccidentalMiser

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Re: How much do you pay in taxes?
« Reply #37 on: October 20, 2017, 03:03:57 PM »

My main takeaway is my property taxes are ridiculous. I own a 4 BR / 2.5 Ba with 2 car garage in a nice town in upstate NY. Property taxes should be 1/2 what they are. The taxes are more than my mortgage, fer cryin' out loud.

You could move to Tennessee.  No state income tax.   My property tax on my 17 acres on the lake with 2 houses is $3300 per year.  I'm going to petition them to try and lower that some.

To the original question, we paid 22k on 153k AGI last year.  Gross was about 190k.  401k and housing deductions were the lion's share of our deductions.

JumpInTheFIRE

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Re: How much do you pay in taxes?
« Reply #38 on: October 20, 2017, 06:34:52 PM »
Well, if the Republicans get the massive cut to the 401k contribution limits they are talking about, I will be paying thousands more and so will most Mustachians.  Reports today say they are considering cutting the limit to $2400 from $18,500 (2018 limit), so that would add $16,100 to my AGI and cost me $4,025 at my current marginal rate. 

https://www.nytimes.com/2017/10/20/us/politics/republicans-tax-401-k.html


albireo13

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Re: How much do you pay in taxes?
« Reply #39 on: October 21, 2017, 06:14:11 AM »
I paid 15% on gross income north of 200K.  Live in NH, no state tax.  However, I commute to my job 1 mile over the border in Ma. so my income is Ma state taxable as nonresident.
There goes 5% !!

  I pay a lot to Ma for using that 1 mile of highway!!

jim555

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Re: How much do you pay in taxes?
« Reply #40 on: October 21, 2017, 06:42:03 AM »
With qualified dividends and long term capital gains taxes are minimal to zero once you are FIREd.

PizzaSteve

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Re: How much do you pay in taxes?
« Reply #41 on: October 22, 2017, 09:47:19 AM »
@PizzaSteve
I think the IRS requires more exact numbers than most of us are giving here, but most of us like to share because there are very few people in real life who are interested in or comfortable sharing income, tax, and net worth information. I think tax fraud is a pretty low risk in this case.


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True, but take precautions.  Even knowing someone is high income can be valuable to thieves.  95% of north americans have very limited wealth and savings, so finding the 5% who do is valuable information to the international hacking groups.   I agree the dialog is valuable, so each can make their choices to share thoughtfully.  Sometimes i see pretty precise numbers, so occasionally post.

obstinate

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Re: How much do you pay in taxes?
« Reply #42 on: October 22, 2017, 12:05:30 PM »
@PizzaSteve
I think the IRS requires more exact numbers than most of us are giving here, but most of us like to share because there are very few people in real life who are interested in or comfortable sharing income, tax, and net worth information. I think tax fraud is a pretty low risk in this case.


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True, but take precautions.  Even knowing someone is high income can be valuable to thieves.  95% of north americans have very limited wealth and savings, so finding the 5% who do is valuable information to the international hacking groups.   I agree the dialog is valuable, so each can make their choices to share thoughtfully.  Sometimes i see pretty precise numbers, so occasionally post.
You can't actually lose money even if your account gets broken into online. At worst, you have to go through some annoyance while Vanguard or whoever does their fraud investigation work. But posting online presents approximately no additional risk even of this happening, unless your handle happens to contain both your Vanguard username and password.

So, rest easy. You can stop posting this warning. Nobody is trolling these forums for victims, because it would be no use to know that "obstinate" has a high net worth.

GetItRight

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Re: How much do you pay in taxes?
« Reply #43 on: October 22, 2017, 12:35:09 PM »
I earn significantly less than OP and pay about $92/day, every day, including weekends and holidays. That is to say about $33,580/yr. That is federal and state. I still have a small fortune of student loans to pay off so I am only contributing minimum to my 401k for the match and no other pretax investments.