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How much income tax did you pay in 2018?

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  • Jarpee Jarpee 
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    Status: Physician, Small Business Owner
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    Earnest refinancing bonus

    I paid a little more but made a lot more.  Overall the rate should be better.  Where is the most accurate place to get your Gross income from?  Sorry for the dumb question.

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    I just take total income (medicare income for W2s, 1099, K1, interest, div) divided by total tax paid. I realize I am deferring some taxes until retirement with retirement accounts but for now I am not paying taxes on that amount so I don’t subtract it from the total. Not sure if this is the correct way to calculate it but thats what I do.

    #198417 Reply
    Liked by MaxPower
    Avatar InfoRPh 
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    Status: Pharmacist
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    Joined: 08/04/2017

    I paid a little more but made a lot more.  Overall the rate should be better.  Where is the most accurate place to get your Gross income from?  Sorry for the dumb question.

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    I keep our last paychecks of the year to determine our gross income (interest income doesn’t account for much of our earnings so I don’t pay much attention to it).

    For my post above to determine federal income tax %, I had to use AGI rather than real gross income since that’s what I have in front of me right now (thanks turbotax.com!)

    So, I know our effective federal income tax rate for gross income is lower than 17%, since a sizable chunk of our income goes to 401k contributions, cafeteria plan benefits (medical/dental/dependent care spending acct) and HSA contributions.  I’m guessing the rate is 15% of gross.

    #198419 Reply
    Avatar Dusn 
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    Status: Physician
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    Joined: 01/02/2018

    Real estate depreciation. And then outright tax fraud – it isn’t a loophole but seems to get discovered frequently when extremely wealthy individuals get investigated for something else (ie manafort). Making me suspect that it’s fairly common and not frequently caught.

    #198431 Reply
    Avatar GoBlueMD 
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    Status: Physician
    Posts: 48
    Joined: 05/27/2017

    http://fortune.com/2017/12/20/conservation-easement-tax-deduction-loophole/

     

    Easement donation tax deduction loophole. It’s genius and basically only available to the mega rich.

    #198439 Reply
    Avatar DCdoc 
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    Status: Physician
    Posts: 326
    Joined: 06/14/2016

    Easement donation will generate audit. The IRS is really cracking down. I wouldn’t touch that with a 10 foot pole

    #198447 Reply
    Liked by Dreamgiver
    Avatar ZZZ 
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    Status: Spouse
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    Joined: 06/18/2018

    It is pretty amazing that all the high tax state high earners that got hit pretty hard by the SALT deduction cap keep directing their anger at the feds as opposed to marching on the statehouses that have been pilfering their pockets all along.

    #198464 Reply
    Craigy Craigy 
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    A lot.

    LEVEL 1 WCI FORUM MEMBER.

    #198467 Reply
    Avatar bean1970 
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    Status: Physician
    Posts: 421
    Joined: 07/12/2017

    A lot.

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    ditto. Though i predict it is 2% lower due to our drop in marginal tax bracket.  haven’t heard final outcome yet…i just got a corrected 1099 consolidated brokerage statement this week. Last year one came in April. Nothing like last minute……

    #198469 Reply
    Liked by Craigy
    Avatar Larry Ragman 
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    Status: Other Professional
    Posts: 390
    Joined: 08/30/2018

    I don’t normally track rate, but I do track totals! This string made me curious, because some of you reported paying more taxes. So, my rate was 22% on federal income taxes only, but I paid almost exactly the same amount as last year even though I made ~$50k more.

    Not sure how others ended up paying more. Every situation is unique, I’m sure, but I live in blue MD and lost ~$20k in deductions to SALT limitations. Best I can figure it the tax bracket reduction helped me out. But I did benefit from both TLH and a credit from the AMT no longer applying.

    #198473 Reply
    Avatar Vesalius 
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    Status: Physician
    Posts: 16
    Joined: 11/11/2018

    Cant find any info on this so called cliff in NY state taxes. Is this a Manhattan tax? Even on the state calculator stuff it doesnt come up and I put an income of 100M.

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    Here is the tax calculation instruction for NY State.  If you make less than the maximal amount, your brackets are as follows on the attached tax bracket table.  Once you pass the threshold, you use the special tax calculation in the attached worksheet 7, that then calculates the tax at the highest rate for all income, no more graduated brackets.

    Nowhere is this published as an 80% rate, but if you calculate the tax for just below the cliff threshold ($1,077,550), then recalculate the tax with an additional $50,000 in income above the threshold, that 50k in extra income will cost you an extra $40,000 in state tax, or a total of $58,500 in combined federal and state income tax.  That 50k in extra income is definitely is costing you an extra $58,500 in total income taxes.  Ouch!

     

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    #198476 Reply
    Avatar Wiscoblue 
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    Status: Physician
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    Joined: 05/17/2017

    Last year I was mad that I was paying so much in state taxes. This year I’m mad that now since I can’t deduct those taxes from my fed return, I have to pay 37% of that to Uncle Sam!

    This tax bill has targeted the high tax states that voted democrat. High state taxes and high mortgage interests are not deductible any more.

    #198495 Reply
    Avatar ZZZ 
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    Status: Spouse
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    @wiscoblue
    “High state taxes and high mortgage interests are not deductible any more”
    Yep. Contact your state representatives and governor and tell them you taxes are absurdly high.

    #198502 Reply
    Liked by iradoc, DCdoc, ENT Doc
    Avatar Wiscoblue 
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    Status: Physician
    Posts: 135
    Joined: 05/17/2017

    @wiscoblue
    “High state taxes and high mortgage interests are not deductible any more”
    Yep. Contact your state representatives and governor and tell them you taxes are absurdly high.

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    I’ve been telling them for many years. Nobody listens! It’s only going to get worse. I will tell them one last time finally when I retire and move to Florida! This year our state will be giving out drivers licenses to ‘undocumented’ people. So they can now be ‘documented’ and vote for more taxes and handouts.

    #198508 Reply
    Avatar DCdoc 
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    Status: Physician
    Posts: 326
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    High state taxes result from the state of residence and only serve that state. I lost $30k in state tax deduction. I’m fine with that. Why would anyone expect to pay a lower federal tax (which benefits everyone) simply because they live in a high tax state? Why should a person in Florida making 250k pay more federal tax than a person living in NY earning the same salary?

    #198509 Reply
    Liked by ZZZ
    Avatar ZZZ 
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    Status: Spouse
    Posts: 292
    Joined: 06/18/2018

    @larry ragman

    “Not sure how others ended up paying more. Every situation is unique, I’m sure, but I live in blue MD and lost ~$20k in deductions to SALT limitations”

    Yeah, the SALT limitation really only hosed high earners with big property tax bills in high tax states. If your total SALT bill was only 30k living somewhere your state + local rate was around 8.75%, you check exactly none of those boxes, so it’s unsurprising your total tax bill was lower.

    Think about a surgical specialist in MN making $1M living in a $1.5M house in Minneapolis. That’s 120k in lost SALT deductions at the top marginal rate, so despite the bracket changes, they still pay more in federal and total taxes.

    #198512 Reply

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