Profit Share Pay Advice Posted
02-16-2020, 11:04 AM
#12
Gets Weekends Off
Joined APC: Apr 2008
Position: Sleeping in the black swan’s nest.
Posts: 5,725
I wish my marginal federal tax rate was only 22%. I was in the 28% federal tax bracket during the Bush and Obama years. Now for the same income, Trump’s tax package pushed me into a 32% effective rate. Oh yea, and I lost a ton of writeoffs (SALT cap, union dues, per diem differential, etc...).
I live in CA and my effective CA state tax rate is 5.5%. I have no problem with my state taking 5.5% of my total income. But the federal government taking 32% of each extra dollar I earn is crap. Thanks for the tax hike GOP.
I live in CA and my effective CA state tax rate is 5.5%. I have no problem with my state taking 5.5% of my total income. But the federal government taking 32% of each extra dollar I earn is crap. Thanks for the tax hike GOP.
02-16-2020, 12:10 PM
#14
Banned
Joined APC: Mar 2013
Posts: 384
Anyone who “likes” getting a refund come tax time is an idiot who loves lending the government money for free.
Better plan is to project your tax liability for the year and then adjust your normal withholdings to get some of that money back throughout the year. I would much rather write a 500-1000 check every year and take advantage of the interest free loan for my own benefit than have the government do the same to me.
02-16-2020, 12:14 PM
#15
Gets Weekends Off
Joined APC: Dec 2018
Posts: 1,085
since it’s not a big deal, let me borrow some money at 0% interest until next Jan/Feb because that is essentially what you are doing by allowing them to withhold more than what you are going to owe.
Anyone who “likes” getting a refund come tax time is an idiot who loves lending the government money for free.
Anyone who “likes” getting a refund come tax time is an idiot who loves lending the government money for free.
you can even underwithold and have the government lend you money.
it can all be done with a little bit of planning.
02-16-2020, 01:03 PM
#16
Gets Weekends Off
Joined APC: Aug 2012
Posts: 456
My effective tax rate for 2019 is a shade under 9%, add in CASDI at another .5% or so after I hit the cap and I’ll have paid about 9.3%. Using that as this year’s number, my PS was withheld at 10.3% in income tax and 1% CASDI, so the state took 11.3%. Using 2019 numbers, when I file, that 2% of my PS withheld over my effective tax rate will be returned to me. Yeah?
02-16-2020, 01:05 PM
#17
Gets Weekends Off
Joined APC: Jan 2006
Posts: 1,597
32% is my marginal rate. Each additional dollar I make is taxed at 32% federal rate. It was 28% under Bush/Obama. I’m in the one area of the tax code where not only did my total taxes go up (thanks to loss of writeoffs for SALT dedication, union dues, and per diem differential), but my marginal rate went up as well. So much for a “tax cut”. More like a tax hike.
02-16-2020, 01:16 PM
#18
Gets Weekends Off
Joined APC: Aug 2012
Posts: 456
32% is my marginal rate. Each additional dollar I make is taxed at 32% federal rate. It was 28% under Bush/Obama. I’m in the one area of the tax code where not only did my total taxes go up (thanks to loss of writeoffs for SALT dedication, union dues, and per diem differential), but my marginal rate went up as well. So much for a “tax cut”. More like a tax hike.
02-16-2020, 01:17 PM
#19
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
32% is my marginal rate. Each additional dollar I make is taxed at 32% federal rate. It was 28% under Bush/Obama. I’m in the one area of the tax code where not only did my total taxes go up (thanks to loss of writeoffs for SALT dedication, union dues, and per diem differential), but my marginal rate went up as well. So much for a “tax cut”. More like a tax hike.
Sounds like your income rose significantly since Obama and so you have to pay more taxes. You are now choosing to blame those additional taxes on Trump rather than an increase in income.
02-16-2020, 01:29 PM
#20
Gets Weekends Off
Joined APC: Apr 2016
Position: Looking left
Posts: 3,378
I wish my marginal federal tax rate was only 22%. I was in the 28% federal tax bracket during the Bush and Obama years. Now for the same income, Trump’s tax package pushed me into a 32% effective rate. Oh yea, and I lost a ton of writeoffs (SALT cap, union dues, per diem differential, etc...).
I live in CA and my effective CA state tax rate is 5.5%. I have no problem with my state taking 5.5% of my total income. But the federal government taking 32% of each extra dollar I earn is crap. Thanks for the tax hike GOP.
I live in CA and my effective CA state tax rate is 5.5%. I have no problem with my state taking 5.5% of my total income. But the federal government taking 32% of each extra dollar I earn is crap. Thanks for the tax hike GOP.
Using that same $191,650 and the 2018 single filer tax brackets of 10/12/22/24/32% you would only owe $43Kin taxes, so $3.6K less for the same amount of income.
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