What was your effective tax rate this year?

[KSB2424 3,173]

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

 

A single person pays 6.2% in SS and 1.45% in medicare payroll tax. So why are they doubling it?

 

And this takes into zero account any deductions or credits. Even the regular standard deduction anyone can take.

 

And why are you counting Health Insurance Premiums as a "tax"? Is buying car insurance a tax too?

 

This has all sorts of Fail.

[Hardcore troubadour 15,911]

 

A single person pays 6.2% in SS and 1.45% in medicare payroll tax. So why are they doubling it?

 

And this takes into zero account any deductions or credits. Even the regular standard deduction anyone can take.

 

And why are you counting Health Insurance Premiums as a "tax"? Is buying car insurance a tax too?

 

This has all sorts of Fail.

Because it's a right wing foundation, that's why.

[KSB2424 3,173]

Just did mine, 18%

 

I just googled average effective tax rate per income and you guys are way over the average.

 

It's normally between 0 and 25% with the average around 12% - 15%

 

Something isn't adding up.

[Thornton Melon 648]

21.3552257% (approximately)

 

ETA: If I factored in property taxes, car excise taxes, sales taxes, etc.. it would be ~25%

[Baker Boy 1,710]

A single person pays 6.2% in SS and 1.45% in medicare payroll tax. So why are they doubling it?

 

And this takes into zero account any deductions or credits. Even the regular standard deduction anyone can take.

 

And why are you counting Health Insurance Premiums as a "tax"? Is buying car insurance a tax too?

 

This has all sorts of Fail.

REALLY!

 

The most pathetic person is probably the one that doesn't understand how much of a tax burden he carries. As a Worker Bee I do understand that you have no clue that us employers are required to match that amount as mandated by Federal Law. And yes we do consider it as part of your compensation, just like UIC, Insurance,etc. so when you see $70,000 a year we see $120,000 per year.

[MTSkiBum 1,626]

22% this year, our income dropped 50k in 2015 when compared to 2014. My wife took almost half the year off and I was forced to take 2 weeks off without pay last year.

[KSB2424 3,173]

REALLY!

 

The most pathetic person is probably the one that doesn't understand how much of a tax burden he carries. As a Worker Bee I do understand that you have no clue that us employers are required to match that amount as mandated by Federal Law. And yes we do consider it as part of your compensation, just like UIC, Insurance,etc. so when you see $70,000 a year we see $120,000 per year.

No shiit Sherlock but the employer pays that match, not the employee. You cannot straight up say that you the individual pays 15% in payroll taxes every year. That is flat out wrong and damn near retarded.

 

This place kills me some times.

 

When determining your individual tax burden you don't count all the taxes your employer pays. That would be dumb.

 

You're talking about a businesses tax burden. Which would be separate calculation as its a seperate entity.

 

A thousand factors goes into what an employer compensates an employee. It's not 1:1. That's a ridiculous statement.

 

In fact most business pass their tax burden to the consumer moreso than their employees.

[jerryskids 7,085]

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.

Why does it surprise you that some of us are engineers? Do you know the FF demographic? MTSkiBum, nobody,Thornton Melon off the top of my head are engineers here.

[Drizzay 745]

I don't pay attention to things like that.

[penultimatestraw 473]

Why does it surprise you that some of us are engineers? Do you know the FF demographic? MTSkiBum, nobody,Thornton Melon off the top of my head are engineers here.

He assumes anyone who posts here is poor, unattractive and uneducated. Or lost.

[cmh6476 1,126]

2

[jerryskids 7,085]

He assumes anyone who posts here is poor, unattractive and uneducated. Or lost.

 

He seems to have a burr in his shorts about my having been an aero engineer. Oh well, one week ago I officially left that to be a dummy sales guy again.

[IGotWorms 4,063]

Now this is a tricky one Geeks. Your knee-jerk reaction is to claim a high effective tax rate so you look like a baller. But true ballers have low effective tax rates because they know how to game the system. So you don't want to look like a fool either by actually paying a high rate.

 

That's why I like to say 13%. It was good enough for Romney and that motherfocker is made of money

[IGotWorms 4,063]

Why does it surprise you that some of us are engineers? Do you know the FF demographic?

 

You've got a point. Many Geeks are nerdy and lacking in social skills

[Bert 1,128]

 

I'm just curious what place that could be?

In Texas property taxes are collected by local school districts and are often called school taxes.

[edjr 6,898]

I ain't no baller, but I party like one

[Bert 1,128]

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.

You should take gross wages not box 1 taxable income. Whether you are Warren Buffet or John Doe taking advantage of 401K, child deductions, mortgage deductions, pre tax medical spending, pre tax dependent care spending both are taking advantage of the same f'd up tax code.

[edjr 6,898]

I put 8500 into 401k last year.

 

still feels like not enough, but that's all I gots

[MDC 7,887]

In Texas property taxes are collected by local school districts and are often called school taxes.

So what you're saying is that hardcore troubadour lives in Texas. That is really interesting.

[IGotWorms 4,063]

So what you're saying is that hardcore troubadour lives in Texas. That is really interesting.

Coinkydink I'm sure

[Bert 1,128]

So what you're saying is that hardcore troubadour lives in Texas. That is really interesting.

There are a couple of other States where school districts collect property taxes but they are not as significant as Texas. So unfortunately RP hardcore troubadour probably lives in Texas.

[MDC 7,887]

There are a couple of other States where school districts collect property taxes but they are not as significant as Texas. So unfortunately RP hardcore troubadour probably lives in Texas.

He's still trying to pretend to be a Marine and NYPD though.

[parrot 789]

I don't pay attention to things like that.

 

This is me, and I'm a CPA.

[KSB2424 3,173]

You should take gross wages not box 1 taxable income. Whether you are Warren Buffet or John Doe taking advantage of 401K, child deductions, mortgage deductions, pre tax medical spending, pre tax dependent care spending both are taking advantage of the same f'd up tax code.

 

I'll take your word for it Bert. But quick question.

 

The question is effective tax rate. What you paid in income tax and payroll tax versus your Gross taxable income.

 

Wouldn't any pre-tax deductions like a 401(k) need to be deducted to get your actual Taxable Wages for that year. Which would be your Box 1 figure. Post tax deductions would be different because they are part of the taxation for that year where pre-tax deductions are not as they (like a 401k) are defferred to a year in the future.

 

[Bert 1,128]

 

I'll take your word for it Bert. But quick question.

 

The question is effective tax rate. What you paid in income tax and payroll tax versus your Gross taxable income.

 

Wouldn't any pre-tax deductions like a 401(k) need to be deducted to get your actual Taxable Wages for that year. Which would be your Box 1 figure. Post tax deductions would be different because they are part of the taxation for that year where pre-tax deductions are not as they (like a 401k) are defferred to a year in the future.

 

In my opinion the 401(k) "loop hole" is no different than the capital gains "loop hole" so many on this board biotch about. Using gross takes the bs out of the discussion. I understand your point about the deferral but that will take care of its self when you pull the funds out of the 401(k).

 

I believe gross gives a true effective tax rate.

[Hardcore troubadour 15,911]

In my opinion the 401(k) "loop hole" is no different than the capital gains "loop hole" so many on this board biotch about. Using gross takes the bs out of the discussion. I understand your point about the deferral but that will take care of its self when you pull the funds out of the 401(k).

 

I believe gross gives a true effective tax rate.

There is a limit to how much I can contribute to a 401k, to realize that tax benefit, and I pay regular rates upon disbursement. There is no limit on capital gains enjoying the lower rate. Labor- cap. Capital- no cap. Doesn't sound fair to me. And let's not forget the 10% penalty for early withdrawal.

[Bert 1,128]

There is a limit to how much I can contribute to a 401k, to realize that tax benefit, and I pay regular rates upon disbursement. There is no limit on capital gains enjoying the lower rate. Labor- cap. Capital- no cap. Doesn't sound fair to me. And let's not forget the 10% penalty for early withdrawal.

FYI this is about calculating effective tax rate.

[Hardcore troubadour 15,911]

FYI this is about calculating effective tax rate.

Seeing as I'm one of those that "biotch" about the inequities of the capital gains rates, I thought it was up for discussion. Never mind.

[Bert 1,128]

Seeing as I'm one of those that "biotch" about the inequities of the capital gains rates, I thought it was up for discussion. Never mind.

The tax code my not be fair but you take advantage of a hellof a lot of deductions in the tax code. If you want to talk about the code being unfair or life in general being unfair start another thread

[Hardcore troubadour 15,911]

The tax code my not be fair but you take advantage of a hellof a lot of deductions in the tax code. If you want to talk about the code being unfair or life in general being unfair start another thread

You brought it up.

[Bert 1,128]

You brought it up.

Simply to explain why gross is better. Do you really not understand the difference?

[Hardcore troubadour 15,911]

Simply to explain why gross is better. Do you really not understand the difference?

Then why the whole "biotch ing" part of it? That's when it became an opinion, not a statement of fact. Opinions are debateable. Understand that?

[Bert 1,128]

Okay retard.

 

Many people on this board biotch about capital gains - fact not my opinion.

 

My opinion is using gross gives a better comparison than box 1.

[DankNuggs 305]

my effective rate is low

[Hardcore troubadour 15,911]

Okay retard.

 

Many people on this board biotch about capital gains - fact not my opinion.

 

My opinion is using gross gives a better comparison than box 1.

Funny.

[Patriotsfatboy1 1,433]

I paid a sh!t-ton in taxes this year. I can't tell you what my effective tax rate is yet, because I am waiting until April 15th to finish my taxes. Once I saw how much had been taken out already, plus the extra $8k that I owe, I figured that I am going to wait until the last minute to pay.

[cmh6476 1,126]

looks like mine was around 19%

 

however, my total property tax for home and vehicles was only about $2,200

[MDC 7,887]

looks like mine was around 19%

 

however, my total property tax for home and vehicles was only about $2,200

My property taxes are only $2400 or so.

[Mungwater 601]

My property taxes are only $2400 or so.

Mine are over $9500 last year.. Don't have state income tax but they definitely go after you in other ways

[Hardcore troubadour 15,911]

9000 in school and property. It's out of control. We have gym teachers making 140k