2014 Federal Effective Tax Rate

[agnes]

I love these kinds of polls and I got a head start on my taxes.  Turbo Tax tells me ours is 10.56% (up .86% from last year).  What's yours?

App users: What is your 2014 federal effective tax rate?
<0%
0.01 - 5%
5.01 - 10%
10.01 - 15%
15.01 - 20%
20.01 - 25%
25.01 - 30%
30.01 - 35%
35.01 - 40%
>40%

Eta: yes, I'm talking about Income Tax

[sicilygirl]

It's clearly too early in the season for this post! 

[agnes]

Feb 2, 2015 17:01:25 GMT -5 sicilygirl said:

It's clearly too early in the season for this post! 

I'm way ahead of schedule, I know.  People can come back to it later.  

[Deleted]

How would it be more than 40%? Are you including FICA?

[UnderProtest]

Where is the special snowflake option??? I'm mad we can't file yet. I have NO idea where we will be this year and it is making me a bit nervous.

[sicilygirl]

I did actually already input my numbers into my tax software at work back at the beginning of January. I haven't gone back to look at it yet since we received all of our actual tax forms to double-check that it's correct, but as of now our effective tax rate is 16%.

[agnes]

Feb 2, 2015 17:34:23 GMT -5 mofongo said:

Feb 2, 2015 17:04:38 GMT -5 agnes said:

I'm way ahead of schedule, I know.  People can come back to it later.  

Where do I find it on TurboTax?

on the cover sheet of the return

[agnes]

Feb 2, 2015 17:15:29 GMT -5 BirdGirl said:

How would it be more than 40%? Are you including FICA?

i don't know, I got carried away with the poll options?

[y4m]

FICA should count in your overall rate, right? It's a federal tax.

[sicilygirl]

Feb 2, 2015 17:39:59 GMT -5 y4m said:

FICA should count in your overall rate, right? It's a federal tax.

I assume she is just asking about income tax.  That's what a tax program would be calculating when it gives you your effective tax rate.  Payroll taxes wouldn't be included in that number.

[jwright]

I used my 2013 rate since 2014 won't be done for awhile; 17.47% federal and 6.6% state. Obviously income tax only.

[jwright]

Feb 2, 2015 17:41:48 GMT -5 mofongo said:

Feb 2, 2015 17:38:19 GMT -5 mofongo said:

Hmm, I don't see a cover sheet, it starts with the 1040, I'll keep looking.

Ooh, I found it. Back to 28%, from 33. This is exciting, and b/c I put 50% of my income into my 401! Still on the borderline, though.

That sounds like your marginal rate (tax bracket) rather than effective (average) rate.

[niq]

For most people, this is

line 74/line 22

But if you have credits (lines 48-55, 66-69 & 71-73), you should subtract them from the numerator. Also it's unclear what effective tax rate means if, say, you did an early withdrawal from a retirement account or whatever, but let's set that aside.

Some of our forms won't even arrive until mid-February

[jwright]

Feb 2, 2015 18:02:24 GMT -5 niq said:

For most people, this is

line 74/line 22

But if you have credits (lines 66-69 & 71-73), you should subtract them from the numerator. Also it's unclear what effective tax rate means if, say, you did an early withdrawal from a retirement account or whatever, but let's set that aside.

Some of our forms won't even arrive until mid-February

Complicating the issue further - it appears that my tax software does not include the 3.8% tax on net investment income (ie Obamacare tax) in its calculation of effective tax rate.   That's really annoying. 

[niq]

Feb 2, 2015 18:07:17 GMT -5 jwright said:

Feb 2, 2015 18:02:24 GMT -5 niq said:

For most people, this is

line 74/line 22

But if you have credits (lines 66-69 & 71-73), you should subtract them from the numerator. Also it's unclear what effective tax rate means if, say, you did an early withdrawal from a retirement account or whatever, but let's set that aside.

Some of our forms won't even arrive until mid-February

Complicating the issue further - it appears that my tax software does not include the 3.8% tax on net investment income (ie Obamacare tax) in its calculation of effective tax rate.   That's really annoying. 

IIRC, technically those taxes fund Medicare, which is probably why it's not including them. You'd have to work out your full federal rate if you wanted to see the impact. I think.

[Deleted]

Feb 2, 2015 17:41:48 GMT -5 mofongo said:

Feb 2, 2015 17:38:19 GMT -5 mofongo said:

Hmm, I don't see a cover sheet, it starts with the 1040, I'll keep looking.

ETA: I'm dumb.

Dude, I can't find it either.

[agnes]

I feel like bumping this since we're much closer to the deadline to file.

[rubytue]

Apr 3, 2015 15:35:54 GMT -5 agnes said:

I feel like bumping this since we're much closer to the deadline to file.

And yet, I still just liked sicilygirl's post about it being far to early in the tax season lol