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Spent some time this weekend doing the annual tax forms to see how much more I need to send in for Federal and State taxes. I've read those statistics on how much people pay "on average" in taxes per year. Not sure where they get their data from, but always seems like I pay a lot more than most other people.
Part of the problem is I live in an expensive real estate area so I rent - no fat mortgage deduction. No other deductions either, so the IRS and State tax board people drool when my tax form arrives. Around here, most people I know that pay those mega mortgages get soaked anyways because Alternative Minimum Tax usually kicks in.
Here's my actual 2006 tax burden. These numbers are approximate percentages of total taxable income (salary + investment income).
Federal = 18%.
State (California) = 6.5%
Social Security = 5.5%
Medicare = 1.2%
California disability insurance tax = 0.6%
Sum = about 32 percent of total income.
No mortgage deduction, but also you pay no school taxes, etc. The school taxes in NJ are astronomical. We haven't filed yet...my husband did contracted work from June through December, so no taxes were taken out of his paycheck during that time. I'm sure we will owe money because of it, so we're waiting to file. Might as well let our money keep collecting interest in the bank before paying what we owe.
I paid 26 grand this year. Last year was over 30 grand. And that's just federal tax.
Please please tell me that is what they took out for the year, not the amount you have to send them.
the IRS wa kind enough to return a nice amount to us this year.
Everyone says we should raise our deductions so we don't let the goverment
"use" our money for the year. But I like getting a big check, if we got it every paycheck I am sure we would find "something fun" to do with it.
Luckily, we have never had to pay. Always get a refund but we watch it all year long. Our CPA even figures up our return for us in several ways: no IRA contribuition, minimium IRA contribution for just one of us and for both of us, max. IRA contribution for just one of us and for both of us. Seems every year it is always better for us to put in the max for both of us as the more you contribute the more you can deduct. We use part of the refund for the IRA's. Sadly, our medical/dental expenses never help out at all. And this year we had one start ortho work so I was sure we would get too . Oh well, the other child starts ortho work this year so we will have two we are paying for this year so maybe we can use it next year. Having the mortgage deduction helps.
whew that is a chunk rance
but could you imagine having to come up with that amount
but if you look at the other side can you imagine how much the person made that not only had taxes taken out during the year but still had to pay that much
I paid 10k but we're renting... I asked her what money would be
saved if we bought... she said we would save 3k. With the money
we save by renting... it would be stupid to buy in this overpriced
california market... I'll wait it out renting and waste money but less
than buying!
Medical care is included in the tax.
And its in Norwegian kroner.. not $ (tho i belewe its about 6.50 nkr per Amerikan $)
I unf missplased some of the paipers. so i only got the tax report numbers. (usaly theyr right but i like to control them anywhy)
I payed 79 485 NKR last year.
This is of my pay 253 000 NKR.
I asume that this is in % more than u in amerika pays. but most i asume goes to medical care here. (who is free. weel we got a smal part we have to pay.this is regulated so everyone regardless of incom can pay)
Tj.
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