Taxes: What percentage of your income did you pay in taxes? (deduction, taxable)

[Diesel350z]

This year I paid 12% of my income in taxes

[Escort Rider]

Would have been good to specify federal income taxes only, which I assume is what you meant, as some states have an income tax and some do not. So, on federal income taxes only I have paid from 15.4% to 16.8% of my adjusted gross income in taxes over the past four tax years (2006 through 2009).

[user_id]

What is included in taxes? Including social security? Don't forget that your employers are paying around 7% of social/medicare taxes on your behalf.

Anyhow, if someone is paying more than ~15% of their income in federal income taxes they need to get a bit more clever about what they do with their money. Avoiding taxes is a great risk-free way of gaining money.

[mathjak107]

it isnt that easy .when things are flat out reported there isnt much you can do. we have had years with 7 figure incomes and its all cut and dry . mutual fund sales, property sales ,earned income as well as once the amt kicks in games over.

many things are reported on k-1's today . we are partners in a real estate holding company as example. when somethings sold its a done deal tax wise. there are no deductions,no 1031 exchanges etc...

its far easier with a business, or lying to find creative ways to cut taxable income. most of us dont have the wiggle room . one year under pressure from my wife to try it we tried a tax attorney vs turbo tax to see if we were leaving anything on the table and they came out within 75 bucks on 7 figures of income.

the problem with most deductions is they are all still expenses . mortgage interest ,real estate taxes etc are all spending 4 bucks from your piggy bank to get back maybe 1 buck of it leaving you poorer then if you didnt have those expenses in the first place .

[Bily Lovec]

24.8% fed. and Im happy to pay it, I just dont like the way its being used

sometimes theres just no way to keep from paying taxes...

[evilnewbie]

How do you get around AMT? I always seem to get cut by it...

[mathjak107]

its tripped by income and tripped by deductions. its been impossible for me to avoid. in fact ill trip it usually 2 years in a row,.

last year sold some property so income tripped it. this year my state and local taxes i paid last year on the sale are so high ill trip it again on deductions.

[jtur88]

Those of us at the bottom of the food chain pay ALL the taxes. The entire tax burden is ultimately paid by the people who are not in a position to pass it along to somebody else. That means the wage-earning consumers. Me and you. I pay my dentist's income tax---he just pads the bill so he gets the income he needs after taxes. My landlord includes property tax in my rent and then pays it for me.

As for direct tax, I pay very little. I haven't filed an income tax return since 1990. I don't drive, so no gas tax or traffic fines, the big ticket item.. I buy almost nothing at retail besides groceries, which are not taxed here. I pay tax on utilities, and that's about it. I don't smoke or drink, so I'm not hit with punitive taxes. The total taxes on all my utility bills last month was $11, and my most recent retail purchases were online (including a $139 TV), so no tax there. I'd be surprised if I pay more than a dollar a month on sales tax for a few taxable items I buy locally, like laundry soap and light bulbs..

So, I'd say all my itemizable direct taxes comes to about $150 a year, tops. I give away at least ten times that much to people who need money, but are not eligible for tax-funded benefits or organized charity.

[slackjaw]

If you pay ALL the taxes what the hell am I paying every year?

[jtur88]

Originally Posted by slackjaw

If you pay ALL the taxes what the hell am I paying every year?

To whom are you replying, and what did that person say that led you to make this response?