What percentage of your total income is your taxable income?

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blimp
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Joined: Wed May 29, 2019 3:45 pm

What percentage of your total income is your taxable income?

Post by blimp »

My taxable income is only 55.8% of my total income.

My deductions: student loans, home loan interest, 401K, KEOUGH, charitable donations, work expenses, qualified business income deduction, DMV costs, childcare expenses

This seems completely ridiculous. My return was prepared by EY Tax Chat, and I reviewed the return and see no sign of error or fraud.

I am curious if other people have similar experiences

-Blimp
Johm221122
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Joined: Fri May 13, 2011 6:27 pm

Re: What percentage of your total income is your taxable income?

Post by Johm221122 »

Yours is extremely close to my percentage, I'm right at 50%
toddthebod
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Joined: Wed May 18, 2022 12:42 pm

Re: What percentage of your total income is your taxable income?

Post by toddthebod »

blimp wrote: Tue Mar 21, 2023 10:53 pm My taxable income is only 55.8% of my total income.

My deductions: student loans, home loan interest, 401K, KEOUGH, charitable donations, work expenses, qualified business income deduction, DMV costs, childcare expenses

This seems completely ridiculous. My return was prepared by EY Tax Chat, and I reviewed the return and see no sign of error or fraud.

I am curious if other people have similar experiences

-Blimp
I'm also sitting at about 55%. My effective Federal tax rate after credits is only about 3%.
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blimp
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Re: What percentage of your total income is your taxable income?

Post by blimp »

Johm221122 wrote: Tue Mar 21, 2023 10:57 pm Yours is extremely close to my percentage, I'm right at 50%
Nice
toddthebod wrote: Tue Mar 21, 2023 11:02 pm I'm also sitting at about 55%. My effective Federal tax rate after credits is only about 3%.
Whoah
capran
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Joined: Thu Feb 18, 2016 9:45 am

Re: What percentage of your total income is your taxable income?

Post by capran »

blimp wrote: Tue Mar 21, 2023 10:53 pm My taxable income is only 55.8% of my total income.

My deductions: student loans, home loan interest, 401K, KEOUGH, charitable donations, work expenses, qualified business income deduction, DMV costs, childcare expenses

This seems completely ridiculous. My return was prepared by EY Tax Chat, and I reviewed the return and see no sign of error or fraud.

I am curious if other people have similar experiences

-Blimp
I'm not sure what you are referencing, as you mention deductions. Are you thinking you don't have enough deductions? 55.8% seems like a pretty good ratio in that regard. We are probably quite high: AGI approx 197k. That does not include 3300 in tax free interest, and 3800 in untaxed SS, as well as Roth dividends of 11k. and our MFJ standard deduction is 28,700. That leaves our line 15 taxable income at 168k. So AGI + tax free int+untaxed SS+Roth Dividends is just a bit over 215k, but taxable income on line 15 being 168k means that 78% of my income is taxed. If we weren't doing tIRA conversions we could greatly reduce the taxes we pay, but I would rather convert now than pay 3% more when the tax cuts are set to expire in a few years.
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celia
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Re: What percentage of your total income is your taxable income?

Post by celia »

All of our pensions and 85% of our SS could be considered Taxable Income, I guess. The part we don’t need for living expenses is invested.

And we don’t have to work anymore.

I don’t get the point of comparing. Neither is right or wrong. It is what it is.
ClaycordJCA
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Re: What percentage of your total income is your taxable income?

Post by ClaycordJCA »

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