ianferrell

Just for grins, as you finish up your taxes for the year... Figure out what you actually owe/pay the gov't for federal income taxes for the last year, and divide that by your total income.

I had another kid (3 now) and my wife works at home, I was shocked at how low my actual amount is given my income... I'm not done with my taxes yet, but its already looking like its going to be under 2%.

Joe Perez

iTrader: (8)

I haven't done mine yet, but I got my 1099 last week and just about fainted. I'm going to owe some money this year.

Effective tax rate will probably wind up at around 35-40%.

shuiend

iTrader: (24)

I distinctly remember about 2 years back you having to write a check for around 50k to the IRS for your taxes. So is there ever a year that you don't owe money?

JasonC SBB

Here are 2 laws that will make for REAL change:

- No withholding taxes from paychecks - all taxes due on April 15th; you write a fatass check to the IRS

- All elections, local and national, on April 16.

Joe Perez

iTrader: (8)

It wasn't quite $50k.

I was a good boy this year- did my estimated taxes conservatively and everything. I just happened to land a couple of big jobs that kinda paid more than I had anticipated...


In a perfect world, no. If you don't owe money than you overpaid.

Joe Perez

iTrader: (8)

I agree that this would make for some changes in the tax policy, at least in the short term.

Unfortunately, we're already deficit-spending as it is. Reducing the amount of money collected in taxes is not going to automatically decrease our spending.

Scrappy Jack

iTrader: (2)

If you are using the numbers Mr. Ferrell is (line 60 61 / line 38 on the 2011 1040), you may need a better financial planner.

I would expect we will fall between 12% and 19% this year as measured above.

Braineack

iTrader: (62)

And increasing revenue isn't going to stiffle it either...in fact the opposite effect is always the norm.

fooger03

iTrader: (2)

Wouldn't work - what percentage actually pays enough federal income taxes that it makes them unhappy?

Also, the first law that would be passed would be to require employer witholdings of anticipated income taxes.

Just sayin'

Edit: I'm at 9.8% effective tax rate for 2011

y8s

iTrader: (8)

Looking at 14.1% filing jointly.

Going for beer with Romney brb.

Joe Perez

iTrader: (8)

I assume you mean line 61/38.

I am single, with no dependents and no mortgage.

I am self-employed, so I have to file Schedule SE and pay an additional 13.3% tax on my gross (sans deductions), above and beyond the normal income tax.

None of my income for 2011 was from capital gains.

Braineack

iTrader: (62)

if my w2 would ever show up..........

Joe Perez

iTrader: (8)

Realistically speaking, that would be 53% of Americans. (The percentage who earn enough to pay any Federal income tax at all.)

Nobody (except Buffett) is going to say "No, I don't think I pay too much in tax."

However, it's my personal opinion that it is unfair that I, a non-millionaire, have to pay considerably more (both as a percentage and in whole dollars) then anyone else who receives the same level of Federal services.

So in that way, it's not really a fair scenario to begin with.

Yeah, we're comparing two things that just aren't directly related. Tax revenue just doesn't affect spending in a meaningful way. If you fix spending (fix meaning that federal spending is less than tax revenue) then taxes will naturally tend to decrease. (There's no doubt that "we" would not tolerate the government racking up a surplus of tax dollars for very long.)

rharris19

iTrader: (41)

Damn you Joe for correcting your sand deductions! I had a funny, but it wouldn't make a damn bit of sense now.

Ours looks to come out to about 14% effective. We take full advantage of all possible qualified tax deferrals like her 403B and such.

Joe Perez

iTrader: (8)

That's ok, go ahead and make the joke.

For everyone else, I previously wrote "I have to file Schedule SE and pay an additional 13.3% tax on my gross (sans deductions)"

rharris19

iTrader: (41)

Now it's over hyped and would suck. I will reserve my talent for another day. One day when you aren't so quick to edit your post I will be there. Oh I'll getcha

neogenesis2004

iTrader: (12)

33% because I claim the FEIE.

xturner

I don't know how true it is, but I heard once that some big union like IBEW got all their members to claim 99(2-digit field max) deductions, so no tax was withheld all year. Instead, the workers put the money in a union-sponsored savings account and paid up on 4/15. The gov't freaked when they realized the cash-flow implications if this spread, and that's why there are now big penalties for underpayment.

Braineack

iTrader: (62)

So what you're trying to say is that you're not paying you're fair share, you're a racist fascist, and you should be burned at the stake?

devin mac

iTrader: (2)

That's how i read that, as well, Brain. :-)

I'm waiting for a 1099 so i can plug in all my numbers and my unmarried, non-child-having, no-mortgage *** can find out i'm paying 35%+ effective again this year...

heading out for lube.