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In reply to the discussion: I just finished my Federal taxes for 2012 ..... [View all]FreeJoe
(1,039 posts)56. My numbers in your format
And here are the effective tax rates:
Tax on Total Income: 20.8%
Tax on Adjusted Gross Income: 20.8% (I don't have any adjustments)
Tax on Taxable Income: 23.3%
Those numbers, based on the Form 1040, come from:
1) Line 61 / Line 22 (Total Tax / Total Income)
2) Line 61 / Line 37 (Total Tax / Adjusted Gross Income )
3) Line 61 / Line 43 (Total Tax / Taxable Income)
I was subject to the Alternative Minimum Tax this year. My AGI was down 36.7% from last year.
I am not retired. I'm in my prime earning years (late 40s). I'm very happy with my income and not bothered at all by my tax rates. Of course, I take advantage of many tax breaks to minimize my tax rate. In the last year, I converted money from an IRA to a Roth IRA, made contributions to a 401K, made contributions to a pension, received pre-tax health/dental/vision insurance, received a pre-tax life insurance benefit, contributed to a 529 college savings plan, and contributed to a Health Savings Account.
I still don't know how this would compare to a "1%er". I'm sure that if I looked at the comparable numbers on their tax form, it would look like they paid an even higher rate. I'm just as sure that the reality would be different because they would have done even more to avoid having income show up as income from tax purposes. So if I looked at Mitt Romney's final Form 1040 and compared the same lines, it would look like he was paying a really high tax rate, but the reality is that he is probably paying much, much less.
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have you added your FICA and state taxes ... please do ...as the rich pay a very small portion
srican69
Feb 2013
#6
I work on a 1099 - so I pay 15% FICA straight off the bat and income taxes on top of that ...
srican69
Feb 2013
#8
I used TaxACT for the first time since we can no longer afford to pay our CPA...
OldDem2012
Feb 2013
#11
Don't worry - anybody using financial data on DU who is not homeless will inevitably be called rich
dmallind
Feb 2013
#26
Does anyone know if I should still file joint although my spouse passed in March 2012?..
Little Star
Feb 2013
#28
Thank You and I too hope you have a very long time before you ever have to deal with this.
Little Star
Feb 2013
#42