New Tax Rates for 2019

[Masterlu]

Originally Posted by Poppyhome

Ok Ivan, no politics.

So where has Serge been?

Ron

MIA

[Poppyhome]

Originally Posted by Masterlu

MIA

C'mon Ivan.............I won't tell.
Was he that Bear?

Ron

[Masterlu]

Originally Posted by Poppyhome

C'mon Ivan.............I won't tell.
Was he that Bear?

Ron

I'm so Busted!

[telematic]

13% for individuals with any income!

[scirica]

Looks like I’m hovering around 35%. I think that’s pretty much what I paid last year.

[mtrot]

Originally Posted by Masterlu

0%: Individuals with incomes of $9,700 or less/Married couples with $19,400 or less

12%: Individuals with incomes over $9,700/Married couples with more than $19,400

22%: Individuals with incomes over $39,475/Married couples with more than $78,950

24%: Individuals with incomes over $84,200/Married couples with more than $168,400

32%: Individuals with incomes over $160,725/Married couples with more than $321,450

35%: Individuals with incomes over $204,100/Married couples with more than $408,200

37%: Individuals with incomes over $510,300/Married couples with more than $612,350

Hmm...

No tax up to $19,400, and only 12% up to $78,950? I may have to reduce our withholding slightly. But any income above $78,950 does jump up to 22%. Hard to figure out exactly how much to have withheld, since my income can vary depending on how much I draw from my pre-tax retirement account.

[Formerly YB-2]

Yep........... our accountant tells us to expect a 3-5% hit with the "tax cut".

[mtrot]

The problem is, while they did double the standard deduction, they eliminated personal exemptions, of which I had three with myself, wife, and daughter. Those exemptions were worth a lot.

[crwilli]

Just studied the breaks. Two jumps standout at $1 more income and boom, 10% or 8% higher tax rate... That means folks there better pay close attention... a charitable donation of a few hundred $ could save you big money.

[multiham]

Originally Posted by crwilli

Just studied the breaks. Two jumps standout at $1 more income and boom, 10% or 8% higher tax rate... That means folks there better pay close attention... a charitable donation of a few hundred $ could save you big money.

I don't even pretend to know much about taxes so I might be completely wrong, but if your taxable income is $315,500 ($499 into the 32% bracket), doesn't your effective tax rate only increase by .02pts from 20.37% to 20.39%? You would pay the 32% only on the $499. Taxes would be $64,179 for the first $315,000 of taxable income (20.37%) and then $160 (32% of the $499) for a total of $64,339 or 20.39%.

Even if your taxable income is $400,000 (Top of 32% bracket) you would pay 22.8% in taxes.