2013 Itemized deductions and HHI, why is my effective so high, what are we doing wrong?

[Anonymous]

I don't get it. I am reading and getting examples from dcum that at 330 HHI Gross income the average effective tax rate should be 22% but we are consistently at 29%.

We have about 55k in deductions primarily from Mortgage interest and home offices and local taxes.

What do people do to get more deductions? We have a really low 3.3% interest rate on our mortgage so maybe that's the issue?

What is everybody doing to get these massive deductions.

[Anonymous]

We are in exactly the same boat paying a out 33% on our $300k income.

[Anonymous]

AMT is probably not allowing all of your deductions.

[Anonymous]

We're at 35% of our $450k income.

Can anyone help?

[Anonymous]

Probably AMT, and also the new high-income tax (funds Obamacare). Ask a financial advisor and they can help.

[Anonymous]

We're at 35% for >$1M. (Much higher than the chart indicates or that most people believe happens at that HHI).

[Anonymous]

Ok great I feel better now, I thought our accountant sucked or I am missing something. Maybe a lot of people lie on DCUM.

[Anonymous]

It feels like those that are taxed the most are 300-500k people.

[Anonymous]

Anonymous wrote:It feels like those that are taxed the most are 300-500k people.

Yet that's not what the data indicates (on the chart, in this thread, or elsewhere).

[Anonymous]

300 to 500 is the must difficult income level. No benefits of the rich or the middle class. It's sometimes easier to just give up and go lower.

[Anonymous]

Anonymous wrote:300 to 500 is the must difficult income level. No benefits of the rich or the middle class. It's sometimes easier to just give up and go lower.

What benefits are you talking about?

[Anonymous]

That graphic doesn't make any sense to me. If you earn less than $30k your taxable rate is negative? No-one writes you a check if your income is less than $30k, how can it possibly be negative.

[Anonymous]

We paid an effective rate of 31.2% - you're doing nothing wrong. We got robbed because we have no mortgage deduction.

[Anonymous]

Anonymous wrote:300 to 500 is the must difficult income level. No benefits of the rich or the middle class. It's sometimes easier to just give up and go lower.

Yes. We are at 445 and got completely hosed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:300 to 500 is the must difficult income level. No benefits of the rich or the middle class. It's sometimes easier to just give up and go lower.

What benefits are you talking about?

Our deductions are phased out.