What's your effective tax rate?

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[Post New]04/15/2013 10:15
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Anonymous
AGI 910K. Effective tax rate 24%.
[Post New]04/15/2013 10:16
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Anonymous
Anonymous wrote:AGI 910K. Effective tax rate 24%.


And this is why we need tax reform....
[Post New]04/15/2013 10:16
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Anonymous
Anonymous wrote:AGI 330 K 30%


10:14 here. Any advice would be much appreciated.
[Post New]04/15/2013 10:21
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Anonymous
Anonymous wrote:
Anonymous wrote:Our adjusted gross income is $94k, our effective tax rate is 5%. The secret is having kids and an oversized mortgage.


Whole strategy sounds brilliant.


It's brilliant except for everything except gaining wealth. Fortunately, I like the house (brick rambler bought just before the recession) and the kids (rambunctious boys).

I definitely recommend a strategy of buying the house ten years earlier and making three times as much. Just pay the taxes.
[Post New]04/15/2013 10:21
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Anonymous
Anonymous wrote:
Anonymous wrote:AGI 330 K 30%


10:14 here. Any advice would be much appreciated.


Do you not have a mortgage?
[Post New]04/15/2013 10:26
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Anonymous
$128K. 20% (federal and VA). 15% federal only

[Post New]04/15/2013 10:53
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Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:AGI 330 K 30%


10:14 here. Any advice would be much appreciated.


Do you not have a mortgage?


10 year mortgage with a 2.75% rate. We got hit with AMT. Does mortgage interest retain its tax advantage despite AMT? Thanks!
[Post New]04/15/2013 10:54
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Anonymous
$825k, 25.5%. Self employed, not salary, so that includes SS and Medicare contributions.
[Post New]04/15/2013 10:54
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Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:AGI 330 K 30%


10:14 here. Any advice would be much appreciated.


Do you not have a mortgage?


10 year mortgage with a 2.75% rate. We got hit with AMT. Does mortgage interest retain its tax advantage despite AMT? Thanks!


Yes. You still get your mortgage interest deduction with the AMT. You do not get property tax or state income tax deduction.
[Post New]04/15/2013 11:16
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Anonymous
Anonymous wrote:$825k, 25.5%. Self employed, not salary, so that includes SS and Medicare contributions.


Why doesn't the new 39.5% marginal rate hit you harder? I guess a significant portion of the $825k is capital gains?
[Post New]04/15/2013 11:24
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Anonymous
Anonymous wrote:$825k, 25.5%. Self employed, not salary, so that includes SS and Medicare contributions.


Well, sure. My 5% rate goes up to 16% when I include those things. But we know from TV that Medicare and Social Security aren't "taxes".
[Post New]04/15/2013 11:37
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Anonymous
Anonymous wrote:
Anonymous wrote:$825k, 25.5%. Self employed, not salary, so that includes SS and Medicare contributions.


Well, sure. My 5% rate goes up to 16% when I include those things. But we know from TV that Medicare and Social Security aren't "taxes".


Point being that the self employed pay those things along with income taxes, including what would otherwise be the employer's portion of SS and Medicare. If you take all that out, then the rate is more like 20%.
[Post New]04/15/2013 14:42
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Anonymous
$2.1 M HHI (labor income) in 2012. $1.2 M in federal, state and local taxes. Based on the PPs, I would say that we pay our fair share.
[Post New]04/15/2013 15:22
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Anonymous
Well 14:42, the others did not include state and local taxes or payroll taxes. For comparison purposes, we need to know the effective federal income tax rate. (I posted mine above but did not include the other taxes, which would push us close to your territory based on what you are saying below).
[Post New]04/15/2013 15:24
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Anonymous
Anonymous wrote:$825k, 25.5%. Self employed, not salary, so that includes SS and Medicare contributions.


what industry? how can I get into that?
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