What was your effective tax rate this year?

[MDC 7,885]

Including all federal, state and local tax (income plus payroll)?

 

27% for me this year - nuts.

[edjr 6,898]

Guess you just made yours up?

 

The 2015 federal income marginal tax rates and brackets.

http://www.consumerismcommentary.com/2015-federal-income-tax-brackets-marginal-rates/#sthash.DjHIFa8l.dpuf

[hoytdwow 202]

eleventy

[penultimatestraw 473]

~37%

[ralphster 274]

25%

[KSB2424 3,173]

Including all federal, state and local tax (income plus payroll)?

 

27% for me this year - nuts.

 

Well Philly has high arse taxes. Lots of local taxes that bump you guys up more than the National Average for you tax bracket.

[MDC 7,885]

Guess you just made yours up?

 

The 2015 federal income marginal tax rates and brackets.

http://www.consumerismcommentary.com/2015-federal-income-tax-brackets-marginal-rates/#sthash.DjHIFa8l.dpuf

 

What part of including federal income and payroll, state and local did you not get Ed?

[penultimatestraw 473]

 

What part of including federal income and payroll, state and local did you not get Ed?

What do you mean by local tax? Sales and property tax?

[edjr 6,898]

 

What part of including federal income and payroll, state and local did you not get Ed?

 

reading it's my strong suit. sorry.

 

how do I even calculate all that?

[MDC 7,885]

What do you mean by local tax? Sales and property tax?

Philadelphia city wage tax.

[MDC 7,885]

 

reading it's my strong suit. sorry.

 

how do I even calculate all that?

Add up your state / local / federal taxes paid and divide by your gross income.

[edjr 6,898]

Add up your state / local / federal taxes paid and divide by your gross income.

 

I just started to file my taxes today, that should be easy.

 

What about 1099? I have one of those. add it onto the gross?

[tanatastic 2,062]

Naturally as GC members we all worked hard and got jobs as Aero-(insert fancy word)-engineers so they havent even come up with a tax bracket high enough for us. Rest of the country hates their job, no one here does.

 

This was the first year of filing joint so my wife (shes an Aero-financial aid-engineer) handled it all. Pretty happy about that.

[edjr 6,898]

Naturally as GC members we all worked hard and got jobs as Aero-(insert fancy word)-engineers so they havent even come up with a tax bracket high enough for us. Rest of the country hates their job, no one here does.

 

Since I turned 25, I have once had a job I hated, I quit within a month.

 

I've bartended (which I love) and worked in IT (which I love)

[tanatastic 2,062]

worked in IT (which I love)

Now thats a soldier.

[edjr 6,898]

Now thats a soldier.

 

why you say that?

 

are you in for golf this year, taint?

[KSB2424 3,173]

edjr,

 

1. Take your Box 1 total on your W2. That is your taxable income.

2. Take you 1099 and what your taxable income is on that.

3. Add those two together, that is your taxable income for 2015.

 

Now take what you paid in INCOME TAXES (payroll, federal, state, local) for 2015

After you do your taxes add or subtract what you owe or refunded from federal and state and local from that amount.

 

Divide that amount into number three above.

 

If you are paying over 24% either you are doing the calculation wrong or you are in the upper 1% of earners and don't use capital gains as income.

[tanatastic 2,062]

 

why you say that?

 

are you in for golf this year, taint?

Nah ill skip it, Lefty left a bad taste in my mouth.

[edjr 6,898]

28.7

[KSB2424 3,173]

28.7

 

Y'all can't be doing it right. I'm just saying. The average effective tax rate is like 16%.

[Hardcore troubadour 15,911]

 

Y'all can't be doing it right. I'm just saying. The average effective tax rate is like 16%.

Not if you factor in school and property tax.

[edjr 6,898]

 

Y'all can't be doing it right. I'm just saying. The average effective tax rate is like 16%.

 

I included social security and medicare. thats like 6500

[KSB2424 3,173]

Not if you factor in school and property tax.

 

That's not what is generally considered your effective tax rate.

 

Property tax (which is actually deductible) and sales tax when you buy shiit is not part of it.

 

You take what you made (that is taxable) and divide it by what you (should) have paid in income taxes that year on your tax return. You have to take into account your refund or what you pay as that gets you to the number.

[MDC 7,885]

 

I included social security and medicare. thats like 6500

This, plus city wage tax. I didn't include property taxes though.

[edjr 6,898]

This, plus city wage tax. I didn't include property taxes though.

 

right, plus state income tax.

[KSB2424 3,173]

 

I included social security and medicare. thats like 6500

 

Correct so lets take a person who made 100k a year as an example.

 

Gross 100k

deferred 5% to a 401(k) = 5k

Box 1 = 95K

 

Based on payroll tax rates and your W4 exemptions:

 

Paid 5,890 in SS

Paid 1,377 in medicare

Paid 10k in federal

Paid 5k in sate

Paid 1K in local

 

Was refunded 2000 in federal return

Was refunded 1000 in state return

Was refunded 0 in Local

 

23,357 - 3,000 (refund) = 20,357 (amount the gov't deemed made you whole for 2015)

 

20,357/95,000 = 0.2142 or 21.4% effective tax rate.

[Hardcore troubadour 15,911]

 

That's not what is generally considered your effective tax rate.

 

Property tax (which is actually deductible) and sales tax when you buy shiit is not part of it.

 

You take what you made (that is taxable) and divide it by what you (should) have paid in income taxes that year on your tax return. You have to take into account your refund or what you pay as that gets you to the number.

People in Florida and Texas can write off their sales tax. Edit: that provision recently expired, but the house just passed a bill to reinstate it.

[penultimatestraw 473]

 

Y'all can't be doing it right. I'm just saying. The average effective tax rate is like 16%.

I did it correctly.

[KSB2424 3,173]

I did it correctly.

 

You may have. A doctors salary who got zero income in a given year from investments (capital gains tax) will have a high effective tax rate. That is still pretty damn high though. You may benefit from hiring an accountant to do your taxes to reduce your tax burden.

[Hardcore troubadour 15,911]

 

That's not what is generally considered your effective tax rate.

 

Property tax (which is actually deductible) and sales tax when you buy shiit is not part of it.

 

You take what you made (that is taxable) and divide it by what you (should) have paid in income taxes that year on your tax return. You have to take into account your refund or what you pay as that gets you to the number.

I'm aware how it works. And I don't what you call it or how you categorize it, but my school and property taxes are just that, a tax. It says so right on my bill.

[KSB2424 3,173]

I'm aware how it works. And I don't what you call it or how you categorize it, but my school and property taxes are just that, a tax. It says so right on my bill.

 

Dude, the OP is discussing your Effective Tax Rate. That rate is about your income vs your income taxes (including payroll taxes). Other taxes not tied to income like your vehicle tax or your sales tax or a gas tax etc are not part of this calculation. Yes its taxes but its not what the question was about.

[Hardcore troubadour 15,911]

 

Dude, the OP is discussing your Effective Tax Rate. That rate is about your income vs your income taxes (including payroll taxes). Other taxes not tied to income like your vehicle tax or your sales tax or a gas tax etc are not part of this calculation. Yes its taxes but its not what the question was about.

Well, it's one of my biggest tax. So I'm going to go ahead and count it

[penultimatestraw 473]

 

You may have. A doctors salary who got zero income in a given year from investments (capital gains tax) will have a high effective tax rate. That is still pretty damn high though. You may benefit from hiring an accountant to do your taxes to reduce your tax burden.

I have an accountant. What I don't have is a mortgage, children or significant income from capital gains.

[MDC 7,885]

I'm aware how it works. And I don't what you call it or how you categorize it, but my school and property taxes are just that, a tax. It says so right on my bill.

 

I am not including my mortgage tax. "School tax" falls under state / local for me. Where the hell do you live that you get a school tax bill?

[Hardcore troubadour 15,911]

 

I am not including my mortgage tax. "School tax" falls under state / local for me. Where the hell do you live that you get a school tax bill?

In a place that sends you a school tax bill. Things aren't done the same everywhere.

[MDC 7,885]

In a place that sends you a school tax bill. Things aren't done the same everywhere.

 

I'm just curious what place that could be?

[mmmmm...beer 816]

28%

[BudBro 183]

Above a rather modest $34,600 in taxable income and up to around $106,000, the real-world middle class tax burden in high-tax American locales is 75%:

 

Social Security and Medicare: 15.3%
Federal income tax: 25% (28% above $83,600)
State income tax: 5% (mid-range)
Healthcare insurance: 15%
Property tax: 15%

15% + 25% + 5% + 15% + 15% = 75%

 

http://www.zerohedge.com/news/guest-post-real-world-middle-class-tax-rate-75

[Hardcore troubadour 15,911]

Above a rather modest $34,600 in taxable income and up to around $106,000, the real-world middle class tax burden in high-tax American locales is 75%:

 

Social Security and Medicare: 15.3%

Federal income tax: 25% (28% above $83,600)

State income tax: 5% (mid-range)

Healthcare insurance: 15%

Property tax: 15%

15% + 25% + 5% + 15% + 15% = 75%

 

http://www.zerohedge.com/news/guest-post-real-world-middle-class-tax-rate-75

You don't pay 25 or 28% federal tax on all that income. Your tax rate is indexed. Hence, your calculations are wrong.

[lickin_starfish 2,006]

Don't forget sales tax, gas tax, school and town taxes, and government fees on your utility bills.

I'm just glad that the Government spends our money wisely.