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I am sure that quite a few people are still working on their taxes (I am one of them), but I thought that people may be interested in continuing prior threads that asked the same question. Please feel free to post your effective tax rate based on your gross income or the amount of income taxes (please don't include property taxes or sales taxes) that you will have paid for '12.

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~17% effective rate, 28% bracket. married with one child. hit with AMT but a very unusual year where I had a huge long t... (more)

absolutg (Apr. 16, 2013 @ 11:49a) |

FWIW and maybe stating the obvious --

There is no Internal Revenue Code or other standard legal definition of "effective ... (more)

tuphat (Apr. 16, 2013 @ 12:33p) |

29% agi 720k. 2 kids self employed

tiguak (Apr. 18, 2013 @ 2:51a) |


Effective tax rate 2.345% if you include the 500 repayment of homebuyer credit... 1.72% if you dont.. 3 Childrens pwn the deductions/credits.

2011 - 7.6%

Had twins in 2012
2012 - 2.4%

I am in very early stages of working on our taxes and it's certainly painful. Our overall 2012 tax liability is in the 6 figures and there is a substantial AMT bill. I actually ran the numbers in October and came to the conclusion that we needed to increase our federal withholdings by some $16K by the end of the year, which we did. It looks like that still wasn't enough, as the AMT bill is larger than I had calculated it to be, so we are looking at paying another $8K by the due date. There is no underpayment penalty.

This is with fully maxed out 401(k)'s, fully maxed out dependent care FSA, healthcare FSA, cafe 125 deductions, mortgage interest deduction, property taxes, several thousand dollars in charitable giving, investment real estate depreciation, etc...

Just like last year, TurboTax is full of glitches (last year TurboTax's reps told me was a really bad year for them in terms of glitches). I am trying to decide whether it's worth pointing those out to them now, while the wait times are very short, or sitting back and hoping that TurboTax figures it out and fixes them on its own... except if they don't, calling them about these issues in March is a nightmare, as they get slammed with phone calls.

About 15%, same as last year. Single, no kids, standard deduction, 25% tax bracket.

About 18%, single guy in his 20s with no extra deductions/credits.

geo123 said:   I am in very early stages of working on our taxes and it's certainly painful. Our overall 2012 tax liability is in the 6 figures and there is a substantial AMT bill. I actually ran the numbers in October and came to the conclusion that we needed to increase our federal withholdings by some $16K by the end of the year, which we did. It looks like that still wasn't enough, as the AMT bill is larger than I had calculated it to be, so we are looking at paying another $8K by the due date. There is no underpayment penalty.

This is with fully maxed out 401(k)'s, fully maxed out dependent care FSA, healthcare FSA, cafe 125 deductions, mortgage interest deduction, property taxes, several thousand dollars in charitable giving, investment real estate depreciation, etc...

Just like last year, TurboTax is full of glitches (last year TurboTax's reps told me was a really bad year for them in terms of glitches). I am trying to decide whether it's worth pointing those out to them now, while the wait times are very short, or sitting back and hoping that TurboTax figures it out and fixes them on its own... except if they don't, calling them about these issues in March is a nightmare, as they get slammed with phone calls.
What's the %?

geo123 said:   

Just like last year, TurboTax is full of glitches (last year TurboTax's reps told me was a really bad year for them in terms of glitches). I am trying to decide whether it's worth pointing those out to them now, while the wait times are very short, or sitting back and hoping that TurboTax figures it out and fixes them on its own... except if they don't, calling them about these issues in March is a nightmare, as they get slammed with phone calls.
What have you found?

I found one as well (in the worksheet that determines whether the state tax refund is taxable), but am not very far along

I am in a substantial AMT situation as well (but not as large as yours - overall liability in high 5 figures) and have foriegn sourced investment tax credits form 1116)

ellory said:   I found one as well (in the worksheet that determines whether the state tax refund is taxable), but am not very far alongYeah, I saw your thread about it. We didn't have a state income tax refund last year, so I didn't check on TurboTax's treatment of it this year, as it's not applicable in our situation.

What have you found?I used ItsDeductible for a bunch of charitable donations and it's not transferring the data correctly, as TurboTax is complaining that there are blanks where ItsDeductible should've put the source of its valuation (thrift store valuation, comparative sales valuation, etc...). We also had a household employee (nanny) in 2011 but not in 2012. Even though I told TurboTax that we didn't have any household employees on our payroll in 2012, TurboTax still attached the household employee schedule to the return and is now complaining that it's "incomplete."

This is pretty minor and should be easily correctable (especially once I figure out the valuation method that TurboTax uses, so that I can put it in manually) and pales in comparison to the nightmare that TurboTax was last year (see here)... it's still early though and there's plenty of opportunity for me to run into problems with them.

Good to know about Its Deductible, am going to work on it this weekend. Note also there are issues on imports from mutual funds, or at least Vanguard. Right now, everything comes in as "Vanguard", not a fund name. Its all 1099-Div, not split across 1099-INTs

And, it seems to "0" filling the unused boxes on the 1099 instead of leaving them blank. The zero's, instead of the blanks, is causing TT to expect additional state tax withholding information. (You have to blank out the zeros to bypass the bug)

12.4% married no kids. A good bit more income than 2011, but the rate is about the same.

ellory said:   Good to know about Its Deductible, am going to work on it this weekend. Note also there are issues on imports from mutual funds, or at least Vanguard. Right now, everything comes in as "Vanguard", not a fund name. Its all 1099-Div, not split across 1099-INTsYep, I noticed the same thing last night. I actually stopped using the import function and put things in manually.

And, it seems to "0" filling the unused boxes on the 1099 instead of leaving them blank. The zero's, instead of the blanks, is causing TT to expect additional state tax withholding information. (You have to blank out the zeros to bypass the bug)Oh, that's really odd and is a good tip. I'll have to double check on that.

Because of the AMT, I paid a marginal federal tax rate of 28% and an effective federal tax rate of 27% when Clinton was president, when George W. Bush was president and (unless there are additional changes in the tax code) I expect to pay the same rates under Obama.

23% F*CK AMT

12.3%

we're not counting FICA right?

What's the definition of effective tax rate?

Tax owed / AGI
or
Tax owed / Taxable income
or
something else?

Tax Owed / Gross Income.

That computes your effective, overall tax rate.

Around 16% + 5% state.

15%, married with dogs

Single guy, investment property owner, standard deduction, full-time student in 2012 (in addition to full-time work).

I'm just finishing my taxes right now. Looks like 5.8% federal + 7.3% state

Well that's obnoxious...

No kids no wife no property, phased out from student loan int deduction.

Standard deduction + a small capital loss carryforward.

17.6% federal
6% state

Obligatory rant about why we incent people to have kids/buy big houses they cant afford/get married when on the whole they create liabilities for the country.

Federal 15% marginal, 4.1% effective, on AGI of about $120K.

19.0% Federal
7.1% State (CA)

Single, no mortgage

married
9.37%
no state

5.97% federal on 204k income, but dual military child, investment homes, primary mortgage, non taxable income (I included that,401k, etc..no state..

jkimcpa said:   23% F*CK AMTI agree. It used to serve a purpose but at this point it just ensnares plenty of middle-class folks with kids rather than rich folks abusing tax loopholes that it was designed to catch.

ellory said:   Good to know about Its Deductible, am going to work on it this weekend. Note also there are issues on imports from mutual funds, or at least Vanguard. Right now, everything comes in as "Vanguard", not a fund name. Its all 1099-Div, not split across 1099-INTs

And, it seems to "0" filling the unused boxes on the 1099 instead of leaving them blank. The zero's, instead of the blanks, is causing TT to expect additional state tax withholding information. (You have to blank out the zeros to bypass the bug)
Another zero fill TT bug. This time its in the Foreign Tax Credit worksheet.

I've actually been able to work through TurboTax's bugs this year, which weren't nearly as bad as they were last year, although I haven't double checked the numbers. Even if we were ready to file, which we are not and have no incentive to rush, as we owe about $8K, we wouldn't be able to do it anyway as there is a message that the IRS hasn't finalized the depreciation/passive activity forms and doesn't expect to do so until the end of February or mid-March.

It doesn't really matter in our situation, but I am surprised that depreciation/passive activity schedules are taking so long to finalize. Did the budget deal do something to those?

Myself: 28% - (Fed + NY) on 205k income (not including maxed out 401k). That's mostly salary and some tax free mutual funds.
GF: 23.5% - (Fed + NY + NYC) on ~75K, just salary, only $100 student loan deduction

bump

TexasRob said:   15%, married with dogs

How many dogs?

10.2% combined Fed + NC state. Married, 3 kids, bought a big house in 2012 with lots of deductible interest this year. Income just above 25% bracket threshold this year due to home purchase (will go higher in 2013 as deductions will reduce).

6% in '12 on about xxk and it will be about 2.5% in '13. x kids in '12 and x kids in '13.

I'm curious, people always feel like they are paying too much in taxes. I wonder, does anybody here ever look at there effective tax rate and say, "Wow, that's kinda low. If my taxes were raised a couple of percentage points I wouldn't mind..."

gringopapo said:   I'm curious, people always feel like they are paying too much in taxes. I wonder, does anybody here ever look at there effective tax rate and say, "Wow, that's kinda low. If my taxes were raised a couple of percentage points I wouldn't mind..."

maybe some do.

if I ever find myself thinking about that, I just go ahead and think about property tax, ad valorum tax, sales tax, employment tax, toll roads, and the other ways that governments abstract money from their constituencies...and then I don't feel like I'm getting anything for free.

TurboTax shows my effective tax rate as -.25% . But when I do the calculation myself I end up with 0%. I think they must be rounding on the zeros somewhere. One income, spouse, 4 kids, qualify as fulltime student, lots of charitable deductions, little bit of rental income.

SasMel: I wish I had that tax rate!

gringopapo said:   I'm curious, people always feel like they are paying too much in taxes. I wonder, does anybody here ever look at there effective tax rate and say, "Wow, that's kinda low. If my taxes were raised a couple of percentage points I wouldn't mind..."

I did with the 2009 taxes. Had a third kid that year (so payments to me from the govt went up), and also re-financed property which included upfront interest at the closing (all deductible). Being military, my housing allowance and subsistence allowance are not taxed. So in the Spring of 2010, I ran TurboTax, and the gov't had to not only pay me back all of my witholding, but then owed me some more money from all the tax credits that year. I'm not saying it's fair, but it was (and is) the law.

28% bracket, 15.6% effective rate, married, no state taxes

Skipping 42 Messages...
29% agi 720k. 2 kids self employed



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