I pay very little taxes in retirement, do you? (55, older, taxable)

[NewbieHere]

I got you beaten. I paid negative income rate. Something like -1.1%, that's what Turbtax is telling me. Loss on self employment due to contribution from employer's part.

[flyonpa]

Originally Posted by matisse12

I was paying zero income taxes in retirement. (no property taxes either, I rent)

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

[mathjak107]

maybe , maybe not .
rents are set by markets . markets don't care if you have a mortgage and your neighbors apartment for rent does not .

many locations in the country rent for less than costs, especially early on with new landlords who just bought . .

[rjm1cc]

You are including all taxes before retirement to only income taxes after retirement. Yes with the same taxable income you could be paying less in income taxes. Yes you do get a break on capital gains. But part of the increase in your capital gains assets probably came from inflation so the after tax purchasing power of the assets you sold maybe less than when you bought it.

I think a lot of people could be in this situation unless their retirement income comes from tax deferred assets -IRA, 401k, pensions, annuities etc.

[matisse12]

Originally Posted by flyonpa

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

My state has the Property Tax Refund - and I get $1500 refund from it every year when I do my tax forms.

[flyonpa]

Originally Posted by matisse12

My state has the Property Tax Refund - and I get $1500 refund from it every year when I do my tax forms.

When you are a renter?

... What state?

[matisse12]

Originally Posted by matisse12

My state has the Property Tax Refund - and I get $1500 refund from it every year when I do my tax forms.

Originally Posted by flyonpa

When you are a renter?

... What state?

yes, I rent. (I told you that at post #5 in this thread)

Property Tax Refund - for renters and home owners
Property Tax Refund

[mathjak107]

ny , in fact the tristate area can be like that for renters . real estate is a long term investment and many landlords have to pay their dues for a while . i know quite a few of our properties , because of cost were less renting than buying in the early years . the depreciation made us whole but not rents alone right away .

[TuborgP]

We pay a lot more than the OP and we are happy to.

[Perryinva]

Well, you always get the 7% savings of no FICA and Med. And after 65, a bigger exemption. But for anyone with appreciable pensions, as Matt always says, the paycheck never stops. I'd still rather have $150k in taxable income, than $50k tax free, any day....