Taxes Filed. What is your effective tax rate?

[Joseph]

Google tells me that the average effective tax rate for all US households was 18.1% in 2010.

 

Are you around average or much more?

 

I have to commend WCI again for alerting me to the tax-advantaged spaces that are available.

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[The White Coat Investor]

I'll be well over average this year but have been below average as an attending a number of times. Can't complain too much, it's a first world problem. I think I was 23-24% last year but expect to hit 30% this year.

[Zaphod]

I am provisionally finished. Anything I add will be for record purposes and not change much now (like student loan interest). Looks like 29% this year. Depending on how this year goes I may open up a pension plan to make it a little better in the tax deferred space. Was 23ish I think last year.

[iglord]

Just wrapped up, TurboTax says -2.74%. Probably the last year my family will have a negative tax rate. That's from the first six months of internship, plus paper losses from a rental house and our relocation expenses. Next year the rental should generate a positive taxable income, and our taxable income will double now that I'm back to part time work.

[Zaphod]

You should be able to depreciate any taxable gain on the property so its a net zero or better.

[Slav4ikMD]

Stupid question:  when you calculate the effective tax rate, are you including or excluding the money that you put away pre-tax for retirement?

 

Anyway, the past couple of years, after passing a certain income threshold, I am above the 30% mark.  But can't complain about it.  Still plenty left and it's better than 40%+ that some of my friends are paying with high earning W2 jobs only.

[Zaphod]

I use gross, and assume this is what turbo tax does as well (quick head calc agrees). On turbotax the first page or the summary will give you your effective rate.

[PhysicianOnFIRE]

I haven't filed this year, but last year it was around 32% with a high state income tax.

I look forward to paying 0% when I decide to hang it up.  Don't worry, I will have paid "my fair share".

[asmallchild]

35% as a high earning w2

Nice problem to have I guess but it still hurts to see that kind of money flying out the door

[scbunker]

We're right around 12% of gross. But then, we're still 'low income' compared to an attending.

[slurpieman]

18.2% here. marginal 28%, filing jointly.

 

[PTM]

Zaphod wrote:

I am provisionally finished. Anything I add will be for record purposes and not change much now (like student loan interest). Looks like 29% this year.

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Regarding the above statement: do we NEED to enter in all the student loan interest we pay, even if you are certain it doesn't give a deduction?  It was my small protest to not bother entering the 6 different forms b/c I know they don't save me a penny!

[Zaphod]

I dont think so, theres no penalty for not claiming deductions and if it made a difference the government would thank you. This year I just want to see the grand total for morbid curiosity.

[TheGipper]

Sadly I hover at about 28% effective tax rate despite maximizing my and spouse's 401k/PSP, HSA, and even some into defined benefit plan.

I'm hopping this improves with tax reform under a GOP administration.  Most plans would help us tremendously, as well as helping out with corporate taxes for those in private practice.  I just read Rubio's tax plan though and shockingly his simplified 15/35% plan may actually hurt many of us.

[PhysicianOnFIRE]

I hadn't looked at the Rubio plan, but here it is.  He actually did quite a bit better than expected in Iowa.

The 35% doesn't hit until $300,000 for joint filers, and interest, capital gains, and dividends aren't taxed.  I could live with this plan.

Of course, all that tax loss harvesting would have been for naught.