Taxes

There was a discussion in one of my other groups and someone said a couple making $100k was paying 20% income tax. I knew that was BS, even taking the standard deduction and nothing else. It ends up being around 8%. (I was paying more like 11% before the tax cut on 100k) To get to 20%, you need to make over $350,000
From the work sheet at the end of the 2018 tax tables. . $350,000 minus $24,000 standard deduction 326,000 Times .32 tax rate 104,320 Minus $36.621 Adjustment for money in lower brackets $67,669 That is still only 19.34% of $350k I think most people would think $360k a year is righteous bucks.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sunday, May 26, 2019 at 1:56:16 AM UTC-4, snipped-for-privacy@aol.com wrote:

What exactly is an "adjustment for money in lower brackets"? I looked at it, for $350K you can't use the tables, there is a very simple sheet there at the end of the tables to figure it out, you wind up paying $98,190 in tax, which is a rate of 28%, not 19%. That form you used is for some special circumstances that are stated at the beginning, not for someone with ordinary income.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sun, 26 May 2019 07:59:50 -0700 (PDT), trader_4

Look right below the tables and you will see a worksheet that looks exactly like what I posted. The "adjustment" is because you pay taxes at the lower rates until you cross each bracket amount and they do that math for you. You compute at the highest bracket you hit and they give you the deduction for the money earned at the lower amounts to get there.
http://gfretwell.com/ftp/tax%20work%20sheet.jpg
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sunday, May 26, 2019 at 11:53:35 AM UTC-4, snipped-for-privacy@aol.com wrote:

Agreed. So, $350K x .35 = 122,500 - 24,310 = 98,190 tax for single
For married, $350K x .32 = 112,000 - 36621 = 75,379
I used single, so it's taxed at an effective 28%. For married, it's 21.5%
IDK where your 19.4% came from, but the biggest difference is that I calculated it for a single filer and you did it for married. I agree that especially for a family, ~20% rate is lower than what most people would think people are paying. Also, if some of that $350K was from long term capital gains, then it's going to be even lower. I said all along that Trump's tax cuts were wrong. With those rates plus greatly increased spending, you get a $1 tril deficit.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sun, 26 May 2019 09:18:52 -0700 (PDT), trader_4

You forgot to take the $24,000 standard deduction. I am glad you are not doing my taxes ;-)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sunday, May 26, 2019 at 2:45:34 PM UTC-4, snipped-for-privacy@aol.com wrote:

Oh OK, good point. I didn't follow the whole form, just looked at the end part, so you're right. Do you agree that someone earning $350K should be paying more in taxes than 19% when we have a $1 tril deficit?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sun, 26 May 2019 12:47:16 -0700 (PDT), trader_4

I have already said everyone should pay more. (Zero to Jeff and Mrs Bezos). I am really just pointing out that 1% really does pay the lions share of the taxes.
. The top 1% pays 30-40% of the taxes and the 5% pays 60% etc. The bottom 50% pays about 2-3%
https://cimg8.ibsrv.net/gimg/www.thehulltruth.com-vbulletin/1866x910/who_pays_75a3fea7f7fb86cb1ca11593e742fe60c0ca72da.jpg
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sunday, May 26, 2019 at 7:44:06 PM UTC-4, snipped-for-privacy@aol.com wrote:

The top 1% pays 30-40% of the taxes and has 99% of the money. WTF?
Cindy Hamilton
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Monday, May 27, 2019 at 6:45:51 AM UTC-4, Cindy Hamilton wrote:

I apologize in advance for my emotional outburst. I know they don't have 99% of the money.
Cindy Hamilton
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On 5/26/19 10:59 AM, trader_4 wrote:

Trader, your numbers are for Single. Gfretwell's are for MFJ.
The "adjustment for money in lower brackets" in Column D of the worksheets are the IRS's new way of adjusting for "first dollar" income in the lower brackets of 10%, 12%, 22%, 24%, 32%, 35% and 37%
The Line 11 worksheet is for any "Taxable Income", after all deductions and adjustments, over $100,000.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sunday, May 26, 2019 at 12:03:52 PM UTC-4, "\" snipped-for-privacy@home.com wrote:

Yes, that mostly explains it. But still, for a married couple, by my math it's an effective rate of 21.5%, not 19.4% but whatever, it's about 20%. It shows people aren't being taxed as much as most people would think. Which is part of why we now have a $1 tril deficit again.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sun, 26 May 2019 01:55:41 -0400, snipped-for-privacy@aol.com wrote:

We're in Canada and pay 15 % on 140 k combined. But our sales tax is 13 % on almost ALL goods & services ! Plus heavy " sin tax " on smokes & booze, John T.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@ccanoemail.ca wrote:

But up here in Canada, we're not paying an *additional* $1k a month for health insurance out of our after-tax disposable income.
And in many cases, our property tax / school taxes are way lower than in the US.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sunday, May 26, 2019 at 11:33:00 AM UTC-4, Home Guy wrote:

And that's if you're subsidized and with probably a $6K deductible. I've posted here many times that a friend who runs a small business, has a family of three, no big health issues and the business is paying $35K a year for their insurance and it's a decent plan, but not the best that's offered by the carrier either. And that's for a business group plan! If you tried to buy it without being in a group, it would be way more.

I'm sure they are lower than they are in NJ. I'm paying $12K on a 3200 sq ft, 3 bedroom house.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sun, 26 May 2019 08:57:40 -0700 (PDT), trader_4

Mine is $1700 on a 3 BR 2 BA house about half that size. That is "under air" but a significant amount of my actual living space is outside in a 2300 sq/ft screen cage.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sun, 26 May 2019 14:42:53 -0400, snipped-for-privacy@aol.com wrote:

Are your property taxes based on sq. feet or bedrooms ? ... doesn't market value make more sense ? In olden days frontage was a factor - because municipal services ran across the front of the property - 100 ft. frontage meant 100 ft. of water, sewer, road, sidewalk, etc and should cost more than 50 ft. frontage. John t.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

Unimproved land value makes much more sense and doesn't affect what people choose to build house wise etc. That's how we do it in Australia.

Makes no sense with water and sewer.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Mon, 27 May 2019 05:49:21 +1000, "Rod Speed"

Down here water and sewer is mostly based on usage with a base administrative fee. The only time you have to pay "front foot" is if they are putting in new lines where they didn't have them before. You are basically paying so much per foot for the pipe in front of your house. Sometimes that is front foot and sometimes it is just a flat rate hook up fee but it is always a 5 figure number.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

I was referring to annual municipal property taxe levy - - in the olden days - using frontage - .. not fees for new services. John T.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sun, 26 May 2019 18:16:22 -0400, snipped-for-privacy@ccanoemail.ca wrote:

That just shows up on your water bill here as far as I know. I have my own water. I looked at my neighbors tax bill where the have city water and I do not see any front foot tax.
Just to make Trader cry. His bill is a little over$12,000 on a 2.1 million dollar 5400 sq ft house. (riverfront on an acre)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Site Timeline

HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.