Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I think you are doing something very, very wrong. Our household is a 5 percenter, and we pay less than half of that. I think it was something like a 15% effective rate.
Would you feel comfortable sharing your income and what percentage goes to each category? I get the feeling we could save you literally thousands and thousands of dollars here.
I'm also a 5%er or so paying 13-15% effective. That person has to be talking about all taxes withheld I would think.
You did. We have a progressive tax system..the more you make the more you pay.
And yet all we hear on the news is how the rich "don't pay taxes".
Just because the system is progressive doesn't mean that you take home less because of an increase in income, you should in most cases still net more income unless you are right on a cusp and lose deductions or trip amt or something like that
That person put 0 on the W4. People can't calculate effective tax rate based on deductions from individual paychecks. Deductions on paychecks don't really reflect actual tax liability. If they have no children, no mortgage deductions, etc., I could see their effective rate at 22--24% at that income.
I'm well aware of the difference between withholding and tax liability. Fwiw 250k mfj taking the standard deduction is roughly 20.5% effective not taking into account 401k contributions, state income tax as a deduction etc maxing 2 401ks drops the effective rate under 17%
AMT can zonk 250k earners that do not itemize because the standard deduction is not AMT deductible. Primary home mortgage is a valid AMT deduction. Also Schedule C and Schedule E deductions can be valid deductions.
AMT can zonk 250k earners that do not itemize because the standard deduction is not AMT deductible. Primary home mortgage is a valid AMT deduction. Also Schedule C and Schedule E deductions can be valid deductions.
Amt wouldn't force you to pay 40% in federal taxes either
Paying off car. Paid half of the outstanding balance today and the remaining will be paid by the proceeds of my tax return. This will be so exciting! No more stupid car payments for a long while!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
