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oldhippie

(3,249 posts)
14. Everyone here must earn a LOT of money, or don't know how to calc effective tax rate ......
Tue Jan 24, 2012, 01:57 PM
Jan 2012

I can't believe everyone here pays what they say. You have to be making a LOT of money to pay an effective federal tax rate (what we are talking about) of greater than 15%.

Effective federal tax rate is not the marginal rate. It does not include FICA or state taxes. It is federal income tax paid divided by gross income.

I'll use myself as an example. 2010 was my last year working before I retired. I did pretty good income-wise. I had wage income, a very little bit of interest and dividend income (less than $200), and nothing else. I took the standard deductions and exemptions. No fancy stuff at all. I had a $1500 energy tax credit from replacing my heat pump which failed last winter (replacement was over $8K.) No other fancy credits or deductions.

From my TurboTax summary:

Adjusted Gross Income $104K
Taxable Income $84K (after standard deduction and exemptions)
Tax Due $11K (from the tax tables, married filing jointly)
EFFECTIVE TAX RATE 10.8%

Even without the $1500 energy credit my effective tax rate would have been 12%.

Now, I would like to see the same numbers from some of you that are claiming to have paid more than Mittens in effective federal tax rate. Either you have adjust gross income of $150K or more (which is well above median household income, and almost halfway to becoming a 1%er), or you need a new tax preparer.

Not trying to defend the Mitt here, but the numbers I see flying around don't make sense. I think evryone is defining their own idea as to what a "tax rate" is.

Well, last year I didn't make enough to pay any tax. hobbit709 Jan 2012 #1
Yeah, me CanonRay Jan 2012 #2
27% most years zipplewrath Jan 2012 #3
17% in federal income tax and 7% in state, plus Social Security & Medicare. sinkingfeeling Jan 2012 #4
Fed & state is about 28% qb Jan 2012 #5
I know my rate was higher, although I'll have to wait until I'm home and review my returns bullwinkle428 Jan 2012 #6
I've been paying around 16.5% but it's likely to go up slackmaster Jan 2012 #7
My sister and BIL, who probably take home $150k total. kestrel91316 Jan 2012 #8
Checking in.. one_voice Jan 2012 #9
ME! I made $28,000 last year. Willard made $45 Million mikekohr Jan 2012 #10
My husband pays 29%. I'm unemployed. Ship of Fools Jan 2012 #11
Everyone I know does... tallahasseedem Jan 2012 #12
Because those with incomes above the SS cap (now $110,100) do not pay SS taxes AnotherMcIntosh Jan 2012 #13
Everyone here must earn a LOT of money, or don't know how to calc effective tax rate ...... oldhippie Jan 2012 #14
It probably isn't $150k, but it's still high metalbot Jan 2012 #15
Exactly. Our household paid 20% last year taught_me_patience Jan 2012 #17
I beg to differ MattBaggins Jan 2012 #16
It's about accurate, consistent definition of terms oldhippie Jan 2012 #18
My effective rate was 28%. n/t X_Digger Jan 2012 #19
I came out to 19% last year. Rockholm Jan 2012 #20
Yeppers. Jankyn Jan 2012 #21
Every one I know.... Tikki Jan 2012 #22
Me - 16.7 % effective rate (tax/income) Crabby Appleton Jan 2012 #23
I know illegal immigrants that pay more taxes Dragonbreathp9d Jan 2012 #24
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