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April 15th is over. How did you come out for the 2013 tax year?

How did you come out for the 2013 tax year?

  • Overall I paid in more than 50% in taxes.

    Votes: 1 4.0%
  • Overall I paid in more than 20% but less than 50%.

    Votes: 10 40.0%
  • Overall I paid less than 20% but more than 10%.

    Votes: 4 16.0%
  • Overall I paid less than 10% but more than 5%

    Votes: 2 8.0%
  • Overall I paid less than 5% but more than 0%

    Votes: 1 4.0%
  • Overal I didn't pay any taxes.

    Votes: 7 28.0%
  • I am just guessing. I didn't calculate it. I could be lying.

    Votes: 1 4.0%
  • I calculated it my answer. My answer is true.

    Votes: 2 8.0%

  • Total voters
    25
  • Poll closed .
Unknown. Ask again on Oct 15th.
 
Here is my personal situation:

Income from all sources = $33,016.66
Federal Income tax, Social Security taxes and Medicare taxes = $3,018.66
Federal Refund = $5,116.00
North Carolina Income tax = $1,133.16
North Carolina refund = $456.00

My federal taxes were at an effective rate of -6.35%
My state taxes were at an effective rate of 2.05%
My overall effective tax rate was -4.30%

I voted for the 6th and the 8th option.
 
Income increased slightly last year resulting in an increase in my tax burden. Funny though I don't feel like I am getting more for my money.
 
For my wife and I put together, our federal tax rate was ~10%, State tax rate was ~4%, and medicare/medicaid taxes are 7.65%. So about 21.5% total.
 
Here is my personal situation:

Income from all sources = $33,016.66
Federal Income tax, Social Security taxes and Medicare taxes = $3,018.66
Federal Refund = $5,116.00
North Carolina Income tax = $1,133.16
North Carolina refund = $456.00

My federal taxes were at an effective rate of -6.35%
My state taxes were at an effective rate of 2.05%
My overall effective tax rate was -4.30%

I voted for the 6th and the 8th option.

You really should fix your withholding. If part of that refund is EIC you're having too much withheld. If you're not getting any refundable credits then your withholding is way, way, WAY too high. Why, if you're making $30-35k/yr, would you possibly let the government hold on to 15% of your income interest free? If you could make the whole year without that money then put it into an IRA or something where it's going to benefit you.
 
For my wife and I put together, our federal tax rate was ~10%, State tax rate was ~4%, and medicare/medicaid taxes are 7.65%. So about 21.5% total.

But the first portion of your income is not taxed. The standard deduction for 2013 was $12,200 and an additional deduction of $3,900 per person in your household.

If your income was around 75,000 and you have 2 kids that 10% comes out to be 6.29%.
 
You really should fix your withholding. If part of that refund is EIC you're having too much withheld. If you're not getting any refundable credits then your withholding is way, way, WAY too high. Why, if you're making $30-35k/yr, would you possibly let the government hold on to 15% of your income interest free? If you could make the whole year without that money then put it into an IRA or something where it's going to benefit you.

I have done that but I can only reduce my FITW to $0.00. Social Security and Medicare cannot be reduced. The federal government will still take out 7.65% no matter what your tax situation is.

There is a way to get Advanced Earned Income Credit. I have done that before but I worked at a bigger company. The company I work for is very small and probably 9 out of 10 of them are eligible for Advanced Earned Income Credit. They probably wouldn't be comfortable doing it.

If you notice that in the scenario I combined Federal Income Tax, Social Security Tax and Medicare tax all as one tax since in reality that is what it is. I have done payroll before. The company writes one check for all 5 of these taxes.

1. Federal Income Tax
2. Social Security (employee portion)
3. Social Security (employer portion)
4. Medicare (employee portion)
5. Medicare (employer portion)

All five of these are added up together and sent to the Federal government in one lump sum for all five of these taxes.
 
But the first portion of your income is not taxed. The standard deduction for 2013 was $12,200 and an additional deduction of $3,900 per person in your household.

If your income was around 75,000 and you have 2 kids that 10% comes out to be 6.29%.

The 10% is the actual rate at which we were taxed, not our tax bracket.
 
You really should fix your withholding. If part of that refund is EIC you're having too much withheld.

You are right about $774. $735.79 of that was held against my will. The income was not from a job and the taxes were held up front no matter what I thought about the situation.

Without signing up for Advanced Earned Income Credit I really only had $38.21 too much withheld.
 
I have done that but I can only reduce my FITW to $0.00. Social Security and Medicare cannot be reduced. The federal government will still take out 7.65% no matter what your tax situation is.

There is a way to get Advanced Earned Income Credit. I have done that before but I worked at a bigger company. The company I work for is very small and probably 9 out of 10 of them are eligible for Advanced Earned Income Credit. They probably wouldn't be comfortable doing it.

If you notice that in the scenario I combined Federal Income Tax, Social Security Tax and Medicare tax all as one tax since in reality that is what it is. I have done payroll before. The company writes one check for all 5 of these taxes.

1. Federal Income Tax
2. Social Security (employee portion)
3. Social Security (employer portion)
4. Medicare (employee portion)
5. Medicare (employer portion)

All five of these are added up together and sent to the Federal government in one lump sum for all five of these taxes.

What I'm focused on is your refund. I'm guessing that even if you're getting EIC that would only account for about half, at most, of your refund amount.
 
What I'm focused on is your refund. I'm guessing that even if you're getting EIC that would only account for about half, at most, of your refund amount.

Give me a few minutes. I'll give you a breakdown.
 
You are right about $774. $735.79 of that was held against my will. The income was not from a job and the taxes were held up front no matter what I thought about the situation.

Without signing up for Advanced Earned Income Credit I really only had $38.21 too much withheld.


Ah. So you must be married.

Hmm...you mentioned that the income wasn't from a job. Are you being subjected to backup withholding on a 1099?
 
Close to 25% after the home, kid and wife deductions for federal. Add in state sales and property tax and I pay roughly 35% of my income in taxes.
 
What I'm focused on is your refund. I'm guessing that even if you're getting EIC that would only account for about half, at most, of your refund amount.

Job 1 $15,832.92
Job 2 $13,504.81
Additional income $3,678.93

Job 1 Social Security $981.64
Job 2 Social Security $837.80
Job 1 Medicare $229.58
Job 2 Medicare $195.82
Job 1 Federal Income Tax Withheld $38.03
Job 2 Federal Income Tax Withheld $0.00
Additional income Federal Income Tax Withheld $735.79

Federal tax ($523.00)
Child Tax Credit $523.00
Additional tax ($368.00)
Earned Income Credit $3,233.00
Additional Child Tax Credit $1,477.00

I hope you can follow all of these figures.
 
sales and property tax

These weren't part of the equation. There is a reason that I referenced April 15. Also, you should have chosen option number 7 as well. You are allowed to choose more than one answer.
 
Ah. So you must be married.

Yes but how did you come to that conclusion?

Lutherf said:
Hmm...you mentioned that the income wasn't from a job. Are you being subjected to backup withholding on a 1099?

I cashed in a 401(k) while the market was up. I'm not so sure I came out as good as I thought.

I paid in about $1,800. I took out $3,678.93. I paid a penalty tax of $368. The $3,678.93 also put my income on a less lucrative part of the EIC chart. I still got back the money that I put into it but I don't think I made 12% gain overall.
 
Job 1 $15,832.92
Job 2 $13,504.81
Additional income $3,678.93

Job 1 Social Security $981.64
Job 2 Social Security $837.80
Job 1 Medicare $229.58
Job 2 Medicare $195.82
Job 1 Federal Income Tax Withheld $38.03
Job 2 Federal Income Tax Withheld $0.00
Additional income Federal Income Tax Withheld $735.79

Federal tax ($523.00)
Child Tax Credit $523.00
Additional tax ($368.00)
Earned Income Credit $3,233.00
Additional Child Tax Credit $1,477.00

I hope you can follow all of these figures.

Those figures tie back exactly to what I calculated but I don't understand the 20% withholding on the "other income". Generally speaking mandatory backup withholding is 28%, not 20% and if it isn't mandatory then you damned sure don't need it to be withheld.
 
These weren't part of the equation. There is a reason that I referenced April 15. Also, you should have chosen option number 7 as well. You are allowed to choose more than one answer.

But we don't have a state income tax, so not including those numbers is not genuine.
 
But we don't have a state income tax, so not including those numbers is not genuine.

I still don't see how sales tax or property taxes are connected to April 15th. There are people who keep up with the amount of sales tax that they actually pay. Non-profit organization do this. I have heard of individuals who do that but they are extremely rare.

What is your motivation for keeping every single receipt and adding up the sales taxes that you pay? It seems absurd. To be honest I doubt that you did that.
 
Yes but how did you come to that conclusion?



I cashed in a 401(k) while the market was up. I'm not so sure I came out as good as I thought.

I paid in about $1,800. I took out $3,678.93. I paid a penalty tax of $368. The $3,678.93 also put my income on a less lucrative part of the EIC chart. I still got back the money that I put into it but I don't think I made 12% gain overall.

Figuring out you were married is easy. It's the only way your EIC could be that much. It's also how I know you must have 2 kids under the age of 17 but I just guessed at that before you posted the details of your tax calculation.
 
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