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Old 04-04-2015, 03:42 PM
 
Location: Seattle-WA-USA
678 posts, read 617,343 times
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Might be a dumb question, but I know Washington is among 7 states that don't have a state income tax. So does that mean that Washingtonians still need to pay federal income tax?
For example, if my salary was 50k a year, I would still need to pay 25% federal income tax in that bracket, but without any additional 8-10 percent state income tax?
I tried looking online but couldn't find a comfortable answer.
Thank you.
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Old 04-04-2015, 03:46 PM
 
Location: Aloverton
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Wouldn't that be wonderful, if Washington were somehow this glorious Federal-income-tax-exempt zone? It might have a population of 250,000,000, though.
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Old 04-04-2015, 04:08 PM
 
Location: Seattle-WA-USA
678 posts, read 617,343 times
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Quote:
Originally Posted by j_k_k View Post
Wouldn't that be wonderful, if Washington were somehow this glorious Federal-income-tax-exempt zone? It might have a population of 250,000,000, though.
Answers my question. Thanks, I guess.
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Old 04-04-2015, 04:11 PM
 
Location: Northwest Peninsula
2,622 posts, read 1,353,537 times
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Quote:
Originally Posted by thedonwind View Post
Might be a dumb question, but I know Washington is among 7 states that don't have a state income tax. So does that mean that Washingtonians still need to pay federal income tax?
For example, if my salary was 50k a year, I would still need to pay 25% federal income tax in that bracket, but without any additional 8-10 percent state income tax?
I tried looking online but couldn't find a comfortable answer.
Thank you.
The answer is yes we still have to pay federal income tax. Our sales tax, B&O taxes and personal property taxes make up the different.

I am curious why you pay so much in federal income tax if you only make $50K? I make a lot more than $50K and my tax bracket after deductions are less then 10% and I don't have a mortgage to deduct.
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Old 04-04-2015, 04:19 PM
 
Location: Seattle-WA-USA
678 posts, read 617,343 times
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Quote:
Originally Posted by rantiquity View Post
The answer is yes we still have to pay federal income tax. Our sales tax, B&O taxes and personal property taxes make up the different.

I am curious why you pay so much in federal income tax if you only make $50K? I make a lot more than $50K and my tax bracket after deductions are less then 10% and I don't have a mortgage to deduct.
That's what it said when I looked up US income tax rates. it said %25 for income between 37k-90k. Here is the link. 2014-2015 Tax Brackets | Bankrate.com
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Old 04-04-2015, 05:39 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
28,411 posts, read 50,625,851 times
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That's no doubt the percentage without itemized deductions. If you have mortgage interest and property taxes, a few kids, and a few other deductions you can get that as low as 5-10%.
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Old 04-04-2015, 05:52 PM
 
Location: Near Graham WA
1,257 posts, read 2,400,986 times
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Quote:
Originally Posted by thedonwind View Post
That's what it said when I looked up US income tax rates. it said %25 for income between 37k-90k. Here is the link. 2014-2015 Tax Brackets | Bankrate.com
That's taxable income, not gross income.
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Old 04-04-2015, 08:33 PM
 
Location: Old Bellevue, WA
18,794 posts, read 13,586,491 times
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Yes, the answer is yes, you still have to file federal income taxes as in any other state. Democrats in Olympia are trying to pass a state capital gains tax as we speak, in order to pay for the spending increases that they want.
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Old 04-05-2015, 11:41 AM
 
Location: Northwest Peninsula
2,622 posts, read 1,353,537 times
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Quote:
Originally Posted by wutitiz View Post
Yes, the answer is yes, you still have to file federal income taxes as in any other state. Democrats in Olympia are trying to pass a state capital gains tax as we speak, in order to pay for the spending increases that they want.
I think the spending increases are not necessarily what they want so much but what the State Supreme Court has mandated to be spend on schools.
Instead of facing some hard decisions to cut current spending their solution is to raise taxes.
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Old 04-05-2015, 11:48 AM
 
Location: Aloverton
6,564 posts, read 11,885,079 times
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On the positive side, finally, a few years back, the WA sales tax deduction for Federal tax went through. I understand that one may take a deduction for one's state income tax in states that levy income tax, and for many years, Washingtonians just got screwed relative to Oregon (high income tax, no sales tax).

The way the deduction works is you can either take a standard figure based on your income, or present a full reckoning of actual sales tax you can document. In practice, that mainly matters if you bought something large that year, such as a car, but anything else that cost you a lot of documentable sales tax would make it worth your while. I did the itemizing for two years and found that I would have saved less than $100 in taxes, with the added likelihood of making my return more unusual and thus fascinating to the IRS, so I kept saving receipts but ceased bothering to tabulate them except in a car-buying year.
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