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.
Reply to
gfretwell
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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.

Reply to
trader_4

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.

Reply to
hubops

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.

Reply to
Home Guy

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.

Reply to
trader_4

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.

Reply to
Anonymous

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.

Reply to
trader_4

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.

Reply to
trader_4

But going to the doctor is "free". You have to pay somewhere. Why now with a regressive a tax as possible? (like a 13% sales tax and sin taxes)

Reply to
gfretwell

...

I knew him well enough know the latter wasn't an issue with him; just what all the deductions went for I could no longer say only that at least most I'm sure wasn't voluntary...

As far as the health care situation, perhaps it was partially owing to being, like we are here, in a low-population area that is under-served compared to larger metro areas but nobody there that I ran across in several years of support was at all happy with their available services and it was pretty commonly felt necessary to go to Minot if they were to get any timely service at all...by the time waited there, the need was generally past or had become an emergency.

Again, granted, this was quite a long time ago by now...hopefully it's better now...

Reply to
dpb

Until recently that insurance cost was isolated from most Americans because the employer paid it. Even now, if you make less than $57,000 Obamacare is government subsidized. 83% of Obamacare recipients get the subsidy. Property/school taxes are another thing. I blame the high cost on the inefficient government schools. We pay one of the highest cost per pupil rates in the world to return a result ranked down in the twenties in outcomes.

Reply to
gfretwell

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.

Reply to
gfretwell

You forgot to take the $24,000 standard deduction. I am glad you are not doing my taxes ;-)

Reply to
gfretwell

We just went through this with my wife, 62, no real health problems in Lee County Florida. Short answer Obamacare is $1000 a month with a $6500 deductible before they pay a dime for the cheap policy and the monthly costs go up fast from there. She was able to find a private policy from a no name company writing for Aetna for $560 a month and a $6500 max out of pocket but they do pay for some stuff along the way. The scary thing is they do not cover pre existing conditions for a year and I understand, no matter what you get, they will call it pre existing. Life is a pre existing condition.

I told her, don't get sick for 3 more years. (actually 2 years and 3 months now) After that she will get Medicare.

Reply to
gfretwell

Yep - it works just fine fo me ! John T.

Reply to
hubops

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.

Reply to
hubops

Where is that inefficiency ? Seems unlikely that it's the pay rate the teachers get. Or even just the percentage of non teachers on the school payroll.

Reply to
Rod Speed

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.

Reply to
Rod Speed

Weyburn Sask. Dead center between Willow Bunch and Forget - kinda says it all, eh? 10th largest population center in the province at just under 11,000. All joking aside it rates 5th best place to live in Canada according to MoneySense Magazine. A new hospital is being built to replace the 101 bed facikity built originally in 1946. The doctor patient ratio is not optimal but apparently newcomers to the area are still able to find doctors taking new patients>

My brother in Willowbrook ( a town of about 60-100) 30 km from both Yorkton and Melville, is much more remote than Weyburn (Mellville is the smallest city in the province at about 4500) Yprkton is the sixth largest city in the province at somewhere around 20,000.

For specialty health care they need to go 145km to Regina.

Reply to
Clare Snyder

Michigan property taxes are based on market value. Of course, size and amenities affect the market value, so providing that information gives other readers a sense of scale.

My taxes are about $3000 on 1200 square feet, 3 bedrooms and 1 bath on 2 acres.

Michigan is a little odd: since the early 1990s, the taxable value has been limited to the rate of inflation while you own your house. If I sold my house today, the next owner might pay 50% more in property taxes than I do.

Cindy Hamilton

Reply to
Cindy Hamilton

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