Anonymous
Post 04/02/2014 12:41     Subject: What was your effective tax rate???
Anonymous wrote:
Anonymous wrote:My dad does all of our family's taxes (used to work H&R Block part-time) so I don't know.. If I know my effective tax rate from my paycheck, how do I add in the tax return I received to calculate the actual effective rate?

For example, I know from each paycheck that my tax rate during the year was 21.4%. But, I received a $942 tax return a few weeks ago. How do I calculate this in - anyone know? I'm guessing it would lower my rate to around 19 or 20%.

For 2014 I got a raise that put me into the next tax bracket. Ugh!


Well, rates are marginal, so simply moving into a higher bracket doesn't mean all your income is taxed higher.

The calculation you want is easy. Just divide the amount on Line 7 of your 1040 by the amount on Line 61. If you wish, you can add your FICA tax, but most people don't since that's a benefit you get back some day.


Thanks! I don't have my return in front of me but will check when I get home.
Anonymous
Post 04/02/2014 12:26     Subject: What was your effective tax rate???
AGI = $185K

ETR = 13.06%
Anonymous
Post 04/02/2014 12:25     Subject: Re:What was your effective tax rate???
Anonymous wrote:
Anonymous wrote:If I already submitted my return, is there an easy way to see this on turbotax?[/quote

If TurboTax is anything like H&R Block At Home software, it's in the summary statement at the end.


Thanks! Per turbotax:

320K 22.3%
Anonymous
Post 04/02/2014 12:23     Subject: What was your effective tax rate???
Anonymous wrote:
Anonymous wrote:$220k income
Effective tax rate per turbotax: 16.07%




You must have a pretty steep mortgage. I'm guessing itemized deductions of around $65,000 maybe?


Mortgage is actually pretty reasonable ($350K). But your guesstimate is pretty spot on - itemized deductions & exemptions of of $50,000..


Anonymous
Post 04/02/2014 12:19     Subject: Re:What was your effective tax rate???
Anonymous wrote:If I already submitted my return, is there an easy way to see this on turbotax?


Its on the first page of your tax documents - go online and pull the PDF and right there where it gives you your totals on the cover sheet itll have effective tax rate at the bottom.
Anonymous
Post 04/02/2014 11:26     Subject: Re:What was your effective tax rate???
Anonymous wrote:If I already submitted my return, is there an easy way to see this on turbotax?[/quote

If TurboTax is anything like H&R Block At Home software, it's in the summary statement at the end.
Anonymous
Post 04/02/2014 11:26     Subject: What was your effective tax rate???
Anonymous wrote:My dad does all of our family's taxes (used to work H&R Block part-time) so I don't know.. If I know my effective tax rate from my paycheck, how do I add in the tax return I received to calculate the actual effective rate?

For example, I know from each paycheck that my tax rate during the year was 21.4%. But, I received a $942 tax return a few weeks ago. How do I calculate this in - anyone know? I'm guessing it would lower my rate to around 19 or 20%.

For 2014 I got a raise that put me into the next tax bracket. Ugh!


Well, rates are marginal, so simply moving into a higher bracket doesn't mean all your income is taxed higher.

The calculation you want is easy. Just divide the amount on Line 7 of your 1040 by the amount on Line 61. If you wish, you can add your FICA tax, but most people don't since that's a benefit you get back some day.
Anonymous
Post 04/02/2014 11:24     Subject: What was your effective tax rate???
34%
Anonymous
Post 04/02/2014 11:22     Subject: What was your effective tax rate???
Anonymous wrote:$220k income
Effective tax rate per turbotax: 16.07%




You must have a pretty steep mortgage. I'm guessing itemized deductions of around $65,000 maybe?
Anonymous
Post 04/02/2014 11:18     Subject: Re:What was your effective tax rate???
If I already submitted my return, is there an easy way to see this on turbotax?
Anonymous
Post 04/02/2014 11:10     Subject: What was your effective tax rate???
My dad does all of our family's taxes (used to work H&R Block part-time) so I don't know.. If I know my effective tax rate from my paycheck, how do I add in the tax return I received to calculate the actual effective rate?

For example, I know from each paycheck that my tax rate during the year was 21.4%. But, I received a $942 tax return a few weeks ago. How do I calculate this in - anyone know? I'm guessing it would lower my rate to around 19 or 20%.

For 2014 I got a raise that put me into the next tax bracket. Ugh!
Anonymous
Post 04/02/2014 06:38     Subject: Re:What was your effective tax rate???
804k, 36%
Anonymous
Post 04/02/2014 02:18     Subject: What was your effective tax rate???
140k, 15.5%
Anonymous
Post 04/01/2014 23:08     Subject: Re:What was your effective tax rate???
250k hhi,
effective tax rate 20.2% according to turbo tax
Anonymous
Post 04/01/2014 21:50     Subject: What was your effective tax rate???
$220k income
Effective tax rate per turbotax: 16.07%