Taxes are to high!
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@scottalanmiller said:
@MattSpeller said:
If you have kids, RRSP, those can hugely alter your taxes (give you back $$$$$$$)
Yeah, I used to make $200K and have a take home of like $96K, with kids! Then 8.25% sales tax on top of that, which isn't bad, but isn't good.
Is that after health insurance or just taxes? How did you have 52% rate??!?!?!!!
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@johnhooks said:
No one would think that's reasonable. Around here, you can figure around 80% is take home, until the next tax bracket.
Unless you plan on making triple what you make now, the "next" nominal bracket is the 28% one. And that rate is only for the money made after that threshold. I'm deep into that bracket.
Let's break down what someone should be seeing in a paycheck. To make this simple, let's assume state income tax out of the equation, because they vary from flat 3.75% in Illinois, a progressive scheme of up to 5.25% in Oklahoma to 0% in Texas. We will also assume you work for a company, so standard W2 wages and we will assume they are cheap ass bastards who went "hurr durr obamacare" and refuse to offer health insurance. Medicare is 1.45% flat, no matter how much you make. FICA is 6.2% up to $118K, then it's nothing. Federal taxes are a progressive tax system, from 10% up to 39.6%. Consult your local tax professional for more info.
If you are making $40K flat, single, taking the standard deduction, your AGI would be ~34K. $2480 would go to SS, $580 would go to Medicare. The 34K would put you in the 15% tax bracket, 10% up to $9K then 15% on the rest, $3716, for $4638 total. If you set up your W4 correctly, you should have ~$620 a week net on $769 gross, or 19%.
These calculations change with your situation. I make a lot more than $40K, my tax deduction is 24% per paycheck with an effective rate of around 19% after all my deductions and such.
If you ever hear people quoting some crazy numbers on taxes, always break it down on them to find out exactly what they are getting. You will find that most people are talking out their ass.
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@Jason said:
I don't think you can count all deducations since some of those you opt into. Mine would be really high with all the Retirmenet, Company stocks etc I do.
I Pay 18% in State Income Taxes and 28% in Federal so 46% of my pay goes to taxes.
Do you live in NYC? That's the only place that would come even close to the local taxes, and that's only 16%. And to get in at 28% effective rate you would be talking about a pretty high level nominal tax rate. So, you making half a mil?
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@scottalanmiller I didn't say $200k was comparable to £45k. what i'm saying is that someone earning £40k and $40k isn't going to have a standard of living very much different from each other in their respective counties. a £28k role which is the equivalent of $40k would only pay 21% tax - there's not much difference.
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@larsen161 said:
@scottalanmiller I didn't say $200k was comparable to £45k. what i'm saying is that someone earning £40k and $40k isn't going to have a standard of living very much different from each other in their respective counties. a £28k role which is the equivalent of $40k would only pay 21% tax - there's not much difference.
I'm just saying that a US company claimed that that was enough to be a "raise".
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@scottalanmiller even back when it was $2:£1 that just doesn't make sense. i'm not sure how any company could have considered that acceptable.
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@larsen161 said:
@scottalanmiller even back when it was $2:£1 that just doesn't make sense. i'm not sure how any company could have considered that acceptable.
They try all the normal tactics ... "Well you know the cost of living is SO much lower, it's like twice as much money right there!"
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@Dashrender said:
@MattSpeller said:
@scottalanmiller said:
Yeah, you take home WAY more than we do.
If you have kids, RRSP, those can hugely alter your taxes (give you back $$$$$$$)
Also remember that our sales taxes are eye watering, 13% on average for most provinces.
It's like 13% in Las Vegas..
http://tax.nv.gov/uploadedFiles/taxnvgov/Content/TaxLibrary/TPI-01.07 Sales Tax Map_07-01-12.pdf
8.1% in Clark County with no city sales taxes in Nevada.
Highest sales tax in the US is in Chicago at 10.45%, 6.25% to the state, 1.75% to Cook County, 1.25% to the city itself and another 1% for Illinois DOT. They also have a very generous non-taxable bracket, unlike Texas which is 8.25% no matter what.
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@PSX_Defector said:
Highest sales tax in the US is in Chicago at 10.45%, 6.25% to the state, 1.75% to Cook County, 1.25% to the city itself and another 1% for Illinois DOT. They also have a very generous non-taxable bracket, unlike Texas which is 8.25% no matter what.
And that is why the stores over by the train station near me advertise "no cook county taxes" on their windows.
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My tax rate (counting healthcare) is something like 35% when I looked at my last paystub for 2015. Refund this will be about $3k because I forgot to change the amounts last fall like I generally do once I have paid in enough to cover my taxes.
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@JaredBusch said:
My tax rate (counting healthcare) is something like 35% when I looked at my last paystub for 2015. Refund this will be about $3k because I forgot to change the amounts last fall like I generally do once I have paid in enough to cover my taxes.
Using the big red V's paycheck, because my current employer pays for my health insurance, mine was ~28% with health insurance, 401(k), and various other insurance parts. Mine right now is 27% all in, with 401(k).
Of course, you got kids and wife and shit, so your insurance cost a lot more than mine does, even when I have to pay for it. That's why I generally don't count that as part of the deduction stuff, because it varies so widely. Work for a good company like mine, it's paid for completely for me. Work for a good company like mine and got fifty kids, you will be paying some cash. Work for big red V with fifty kids, only 4 times what I paid for myself.
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@JaredBusch said:
@PSX_Defector said:
Highest sales tax in the US is in Chicago at 10.45%, 6.25% to the state, 1.75% to Cook County, 1.25% to the city itself and another 1% for Illinois DOT. They also have a very generous non-taxable bracket, unlike Texas which is 8.25% no matter what.
And that is why the stores over by the train station near me advertise "no cook county taxes" on their windows.
Winnebago County is 1% while DuPage is only .25%. DeKalb is 0%, so take it what you will.
Taxes are always relative. Rockford doesn't have the property values of DuPage county while DeKalb taxes the ever loving shit out of farms. So they come to an equilibrium.
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@PSX_Defector said:
@JaredBusch said:
My tax rate (counting healthcare) is something like 35% when I looked at my last paystub for 2015. Refund this will be about $3k because I forgot to change the amounts last fall like I generally do once I have paid in enough to cover my taxes.
Using the big red V's paycheck, because my current employer pays for my health insurance, mine was ~28% with health insurance, 401(k), and various other insurance parts. Mine right now is 27% all in, with 401(k).
Of course, you got kids and wife and shit, so your insurance cost a lot more than mine does, even when I have to pay for it. That's why I generally don't count that as part of the deduction stuff, because it varies so widely. Work for a good company like mine, it's paid for completely for me. Work for a good company like mine and got fifty kids, you will be paying some cash. Work for big red V with fifty kids, only 4 times what I paid for myself.
Doing the straight up math off my last pay stub for 2015
My income minus payroll taxes = 21.01% tax
Adding in $11.8K in medical premiums to the taxes side brings it to 32.33%
Adding my IRS refund of $2.9k back in brings it to $29.56% -
@PSX_Defector said:
@johnhooks said:
No one would think that's reasonable. Around here, you can figure around 80% is take home, until the next tax bracket.
Unless you plan on making triple what you make now, the "next" nominal bracket is the 28% one. And that rate is only for the money made after that threshold. I'm deep into that bracket.
Let's break down what someone should be seeing in a paycheck. To make this simple, let's assume state income tax out of the equation, because they vary from flat 3.75% in Illinois, a progressive scheme of up to 5.25% in Oklahoma to 0% in Texas. We will also assume you work for a company, so standard W2 wages and we will assume they are cheap ass bastards who went "hurr durr obamacare" and refuse to offer health insurance. Medicare is 1.45% flat, no matter how much you make. FICA is 6.2% up to $118K, then it's nothing. Federal taxes are a progressive tax system, from 10% up to 39.6%. Consult your local tax professional for more info.
If you are making $40K flat, single, taking the standard deduction, your AGI would be ~34K. $2480 would go to SS, $580 would go to Medicare. The 34K would put you in the 15% tax bracket, 10% up to $9K then 15% on the rest, $3716, for $4638 total. If you set up your W4 correctly, you should have ~$620 a week net on $769 gross, or 19%.
These calculations change with your situation. I make a lot more than $40K, my tax deduction is 24% per paycheck with an effective rate of around 19% after all my deductions and such.
If you ever hear people quoting some crazy numbers on taxes, always break it down on them to find out exactly what they are getting. You will find that most people are talking out their ass.
Ah sorry I should have clarified my position more. I'm married filing jointly so the next for me would be $74,901. Plus PA state tax is 3.07% plus the local township/borough junk here which changes drastically depending on the area and is charged both where you live and where you work (in our side of the state this can end up being 2-3%). I also wasn't counting any deductions in that so that does make a difference in your favor.
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i have no idea. being self employed is spectacular. so are CPAs....
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@johnhooks said:
@PSX_Defector said:
@johnhooks said:
No one would think that's reasonable. Around here, you can figure around 80% is take home, until the next tax bracket.
Unless you plan on making triple what you make now, the "next" nominal bracket is the 28% one. And that rate is only for the money made after that threshold. I'm deep into that bracket.
Let's break down what someone should be seeing in a paycheck. To make this simple, let's assume state income tax out of the equation, because they vary from flat 3.75% in Illinois, a progressive scheme of up to 5.25% in Oklahoma to 0% in Texas. We will also assume you work for a company, so standard W2 wages and we will assume they are cheap ass bastards who went "hurr durr obamacare" and refuse to offer health insurance. Medicare is 1.45% flat, no matter how much you make. FICA is 6.2% up to $118K, then it's nothing. Federal taxes are a progressive tax system, from 10% up to 39.6%. Consult your local tax professional for more info.
If you are making $40K flat, single, taking the standard deduction, your AGI would be ~34K. $2480 would go to SS, $580 would go to Medicare. The 34K would put you in the 15% tax bracket, 10% up to $9K then 15% on the rest, $3716, for $4638 total. If you set up your W4 correctly, you should have ~$620 a week net on $769 gross, or 19%.
These calculations change with your situation. I make a lot more than $40K, my tax deduction is 24% per paycheck with an effective rate of around 19% after all my deductions and such.
If you ever hear people quoting some crazy numbers on taxes, always break it down on them to find out exactly what they are getting. You will find that most people are talking out their ass.
Ah sorry I should have clarified my position more. I'm married filing jointly so the next for me would be $74,901. Plus PA state tax is 3.07% plus the local township/borough junk here which changes drastically depending on the area and is charged both where you live and where you work (in our side of the state this can end up being 2-3%). I also wasn't counting any deductions in that so that does make a difference in your favor.
With married joint, your AGI would be 13K versus the 6k. So you would be making ~90k raw before you hit my tax bracket.
People always forget it's AGI, not what you make. I made decent 6 figures last year, woo gambling wins, but my AGI is well under that.
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@PSX_Defector said:
@johnhooks said:
@PSX_Defector said:
@johnhooks said:
No one would think that's reasonable. Around here, you can figure around 80% is take home, until the next tax bracket.
Unless you plan on making triple what you make now, the "next" nominal bracket is the 28% one. And that rate is only for the money made after that threshold. I'm deep into that bracket.
Let's break down what someone should be seeing in a paycheck. To make this simple, let's assume state income tax out of the equation, because they vary from flat 3.75% in Illinois, a progressive scheme of up to 5.25% in Oklahoma to 0% in Texas. We will also assume you work for a company, so standard W2 wages and we will assume they are cheap ass bastards who went "hurr durr obamacare" and refuse to offer health insurance. Medicare is 1.45% flat, no matter how much you make. FICA is 6.2% up to $118K, then it's nothing. Federal taxes are a progressive tax system, from 10% up to 39.6%. Consult your local tax professional for more info.
If you are making $40K flat, single, taking the standard deduction, your AGI would be ~34K. $2480 would go to SS, $580 would go to Medicare. The 34K would put you in the 15% tax bracket, 10% up to $9K then 15% on the rest, $3716, for $4638 total. If you set up your W4 correctly, you should have ~$620 a week net on $769 gross, or 19%.
These calculations change with your situation. I make a lot more than $40K, my tax deduction is 24% per paycheck with an effective rate of around 19% after all my deductions and such.
If you ever hear people quoting some crazy numbers on taxes, always break it down on them to find out exactly what they are getting. You will find that most people are talking out their ass.
Ah sorry I should have clarified my position more. I'm married filing jointly so the next for me would be $74,901. Plus PA state tax is 3.07% plus the local township/borough junk here which changes drastically depending on the area and is charged both where you live and where you work (in our side of the state this can end up being 2-3%). I also wasn't counting any deductions in that so that does make a difference in your favor.
With married joint, your AGI would be 13K versus the 6k. So you would be making ~90k raw before you hit my tax bracket.
People always forget it's AGI, not what you make. I made decent 6 figures last year, woo gambling wins, but my AGI is well under that.
Ah true good point, I have a daughter too so it would be more, what is it like 17k?
Ya I just looked it up. It's 4k for each child.
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@JaredBusch said:
My tax rate (counting healthcare) is something like 35% when I looked at my last paystub for 2015. Refund this will be about $3k because I forgot to change the amounts last fall like I generally do once I have paid in enough to cover my taxes.
That's weird - why would you pay in early? In fact, why not do the opposite, short them as much as possible, bank the cash and send them a check?
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@Dashrender said:
@JaredBusch said:
My tax rate (counting healthcare) is something like 35% when I looked at my last paystub for 2015. Refund this will be about $3k because I forgot to change the amounts last fall like I generally do once I have paid in enough to cover my taxes.
That's weird - why would you pay in early? In fact, why not do the opposite, short them as much as possible, bank the cash and send them a check?
It's the world's worst savings plan! I've known people who used taxes like a savings account before, not such a great way to go about things. Personally I've got it to the point where it's as close to zero at tax time as possible (normally $40 or so either way.)
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@larsen161 said:
@travisdh1 said:
@johnhooks had to bring this up in "that other thread that got out of hand". So I decided to start a thread dedicated to taxes, and what is or is not reasonable.
For the record, I make less than $40k/year currently, have 20.5% taken in deductions, and a 7.5% local sales tax. Also, yes, I'm getting the resume and precis ready for a job hunt.
Does anyone think 28% when making less than 40k is reasonable? (Actually get to spend ~28,800.) That doesn't include the healthcare crazy.
you're paying 20.5% on what you earn and 7.5% on what you spend so you're not at 28% tax with $28.8k to spend. it's $31.8k spendable
Yeah I would only Count Income tax.
