I pay very little taxes in retirement, do you? (federal, 2015, retired)

[tommy64]

Originally Posted by flyonpa

The Property Tax is "buried" in the Rent, You personal don't pay it but included into your Rental Payment.

If it were a legitimate tax payment the renter could itemize it.

[mathjak107]

Originally Posted by nancymyers2000

There is a higher standard deduction if you don't itemize and you are over 65. This is from the IRS regs:

Higher standard deduction for age (65 or older). If you don't itemize deductions, you are entitled to a higher standard deduction if you are age 65 or older at the end of the year. You are considered age 65 on the day before your 65th birthday. Therefore, you can take a higher standard deduction for 2016 if you were born before January 2, 1952.

thanks , i itemize so i knew the rules changed . i did not know if you don't itemize you still get it .

[mathjak107]

Originally Posted by NYgal1542

I do not pay any taxes. And I live in NY state, land of taxes!

Guess you can figure my income isn't so great.

But I am not complaining. I learned a long time ago to be grateful for what I have. And I am.

i live in nyc and paid very little in taxes . being we are delaying ss and living off cash , dividends and interest i could not believe how little we ended up owing even though income was in the 6 figures ..

[oldsoldier1976]

Originally Posted by tommy64

If it were a legitimate tax payment the renter could itemize it.

Some states there is a deduction. Of course that is only relative to state taxes.


OP you should not be shocked at not paying much of anything in taxes during retirement. It is quite common when you add up all the pieces. You mention the biggies of FICA, Midicare taxes which really make a big difference. You are also not socking away tax deferred money into 401k or tIRAs in retirement. It is a lovely thing.

[Jstarling]

Taxes are our single largest expense. My healthcare premiums are second.

[SportyandMisty]

If you're referring to income tax (as opposed to other taxes), my effective tax rate is:



No pension. We're too young to collect SS yet. Property taxes take a chunk.

[SportyandMisty]

Originally Posted by flyonpa

The Property Tax is "buried" in the Rent, You personal don't pay it but included into your Rental Payment.

The burden of the property tax falls on a combination of the landlord and the tenant, based on the price elasticities of demand and supply -- essentially the slopes of the demand and supply curves. It would be highly unusual for the entire burden to fall completely on one or the other.

See the incidence of the tax in the following two simple charts. These charts say "consumer" and "producer" but just substitute in "renter" and "landlord":

[DaveinMtAiry]

Originally Posted by mathjak107

until social security kicks in we are paying very very low taxes . mostly because medical insurance and dental expenses have been sky high .

Yes but the medical deduction level is so high that even with major medical bills last summer we found we could not get to the limit that would allow us to start deducting

[eastcoastguyz]

Originally Posted by Willistonite

I'm thinking you have a great accountant!! How do you pay 0% on sale of stock and bonds and mutual
funds on less you did have any gain on them?

You would pay zero on them while they are still within an IRA account.

[mathjak107]

they are tax deferred not tax free then .