Moderator: Edi
I own a home this year, plus I sold some stock at a loss. I got to deduct 12,000 dollars so it really cuts down on my income. Effective tax rate is the percentage of my income paid to federal govt when compared to gross income.neoolong wrote:Dude, it's Feb. It's a bit early to be doing taxes already. But tax exemptions are good.
When you mean effective tax rate, is that your averaged rate? Because that is pretty low.
Once you are not a student you sorta get screwed at your first job, assuming its decent pay, until you get a house. After that your taxes are pretty low but then again you have no money cause it all goes to the mortage.neoolong wrote:Yes, tax deductions are good. I hope when I have to pay taxes that they'll be low. Then again that might mean less social services. Ah well.
Yes, thank you for that news to brighten my day.TrailerParkJawa wrote:Once you are not a student you sorta get screwed at your first job, assuming its decent pay, until you get a house. After that your taxes are pretty low but then again you have no money cause it all goes to the mortage.neoolong wrote:Yes, tax deductions are good. I hope when I have to pay taxes that they'll be low. Then again that might mean less social services. Ah well.
) Is this a good time to tell you that CA has really high income taxes compared to our neighbor Nevada?neoolong wrote:Yes, thank you for that news to brighten my day.TrailerParkJawa wrote:Once you are not a student you sorta get screwed at your first job, assuming its decent pay, until you get a house. After that your taxes are pretty low but then again you have no money cause it all goes to the mortage.neoolong wrote:Yes, tax deductions are good. I hope when I have to pay taxes that they'll be low. Then again that might mean less social services. Ah well.
Yeah, I started reading that article. I'll take a better look and post something after I get some sleep.TrailerParkJawa wrote:Ah, cool. Mabye you should go check out the thread about the Great Libertarian Offer. Id be interested in what you think.neoolong wrote:I already pretty much knew that. Taxes can suck here. I am an economics major after all.
Actually if you are getting a refund you want to file as early as possible so you can get your refund as fast as possible. If you owe then you should wait till the April deadline and then file for an extension. You want to wait as long as possible.neoolong wrote:Dude, it's Feb. It's a bit early to be doing taxes already. But tax exemptions are good.
Unfortunately for me I didn't borrow enough money for my mortage to really make it worthwhile to itemize. I itemized it last year and really had to stretch things to end up with the taxes I owed being within $100 of what the standard deduction was. That's what I get for putting 20% down so I didn't have to pay for mortage insurance.TrailerParkJawa wrote:This is the first year I can take a lot of itemized deductions. Having a home really shelters a lot of income. Last year my effective tax rate was 16.84%, this year it is 9.62%. This is with a similar income (made 5 grand less this year )
Well, it probably evened out in the end, depending of course on how much PMI you would have paid had you not put 20% down.Tsyroc wrote:That's what I get for putting 20% down so I didn't have to pay for mortage insurance.
That's pretty much how I look at it but I was still disappointed that having a mortage didn't help me out more with my taxes.ArthurDent wrote:Well, it probably evened out in the end, depending of course on how much PMI you would have paid had you not put 20% down.Tsyroc wrote:That's what I get for putting 20% down so I didn't have to pay for mortage insurance.
My interest payments from July-December were $8500. I got around PMI by getting a 10/10/80 loan. 10% down, borrow 10% for the down, and the traditional 80% mortage.Tsyroc wrote:Unfortunately for me I didn't borrow enough money for my mortage to really make it worthwhile to itemize. I itemized it last year and really had to stretch things to end up with the taxes I owed being within $100 of what the standard deduction was. That's what I get for putting 20% down so I didn't have to pay for mortage insurance.TrailerParkJawa wrote:This is the first year I can take a lot of itemized deductions. Having a home really shelters a lot of income. Last year my effective tax rate was 16.84%, this year it is 9.62%. This is with a similar income (made 5 grand less this year )
Im getting a big refund from both FED and STATE so it is important to get is as soon as possible. Especially since I have no income right now.ArthurDent wrote:Actually if you are getting a refund you want to file as early as possible so you can get your refund as fast as possible. If you owe then you should wait till the April deadline and then file for an extension. You want to wait as long as possible.neoolong wrote:Dude, it's Feb. It's a bit early to be doing taxes already. But tax exemptions are good.
As for me I sent my taxes in a week and a half ago. My family is getting a nice sized fefund.
