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Tax Year 2006

blackangst1

blackangst1

Lifer
I actually did pretty well all things considered. Im definately middle class (for Phoenix) and will be bold enough to say income between 50-75k. I dont own a house and have no children; however, I have a couple IRA's and a few other tax reducing things going on, so all in all my tax rate for 2006 was 12%!!! woohooo! Of course I had to pay, but that is by design (I dont like getting zero return on my own money). I wouldnt mind a tax cut hehe

Anyway, lets try and not turn this into a flame fest. I've always believed that there are GREAT tax deductions for middle class that no one ever takes. Fortunately for me I learned a long time ago to use them.

So? How'd you all do?
 
Getting $1,200 back! Had to writeoff a ton of stuff though to get it. They were trying to tax me $700 for $2,000 of 1099 work!
 
First year of being able to use mortgage and property taxes that exceed the standard deduction. THis is also the first full tax year of marriage. However I discovered an issue with my W2s that lead to the govt taking large amounts of taxes out of my paycheck each month.

Needless to say this issue is being resolved and should net me about 400 after taxes a month income.
 
Tax Rate of 2% - Benefits of self employment and not having a stable residence.
 
Originally posted by: EagleKeeper
Tax Rate of 2% - Benefits of self employment and not having a stable residence.
Click to expand...

Really? According to Dave, who claims to be self employed and forced to move around constantly, he has a 100% tax rate.
 
Originally posted by: jrenz
Originally posted by: EagleKeeper
Tax Rate of 2% - Benefits of self employment and not having a stable residence.
Click to expand...

Really? According to Dave, who claims to be self employed and forced to move around constantly, he has a 100% tax rate.
Click to expand...

Dave may be to stubborn to use the tax thread and/or consult(consort) with a known conservative.

I am sure that he will be along soon to put his own spin on this thread

 
I didn't do too badly, although I'm changing my claimed deductions this year so my refund isn't quite so large and I can get more of it when I earn it and actually invest it. Oddly enough, although I don't have too many deductions I can make, I still beat the standard deduction because my state taxes (Maryland) are so high!
 
Originally posted by: Rainsford
I didn't do too badly, although I'm changing my claimed deductions this year so my refund isn't quite so large and I can get more of it when I earn it and actually invest it. Oddly enough, although I don't have too many deductions I can make, I still beat the standard deduction because my state taxes (Maryland) are so high!
Click to expand...

About that time we consider moving next door to Delaware, eh chaps?
http://money.cnn.com/2006/04/10/pf/taxes/taxfriendly_states_2006/index.htm

I still don't understand how I "owed" the state of Maryland $148.
I did manage to get back $802 from the federal government though.

All this on ~$12k income.
 
Originally posted by: jrenz
Originally posted by: EagleKeeper
Tax Rate of 2% - Benefits of self employment and not having a stable residence.
Click to expand...

Really? According to Dave, who claims to be self employed and forced to move around constantly, he has a 100% tax rate.
Click to expand...

thats because whereever he goes people learn to hate him.
 
Originally posted by: EagleKeeper
Tax Rate of 2% - Benefits of self employment and not having a stable residence.
Click to expand...

Interesting

So you support Americans should be modern day Nomads???

Certainly flies in the face of pursuit of happiness unless of course you enjoy the gypsy lifestyle (no offense to gypsies of course because that is their choosing).
 
Originally posted by: dmcowen674
Originally posted by: EagleKeeper
Tax Rate of 2% - Benefits of self employment and not having a stable residence.
Click to expand...

Interesting

So you support Americans should be modern day Nomads???

Certainly flies in the face of pursuit of happiness unless of course you enjoy the gypsy lifestyle (no offense to gypsies of course because that is their choosing).
Click to expand...

WTF man lol geez

Anyway its nice to see people using the system that keeps the rich...well, rich! I, personally, LOVE to see middle income people post these numbers...so many tax rates less than 20%. Puts a smile on my face 🙂 Good job peeps!
 
I have no idea how you guys are getting off with 13% or so...I netted about 3.2K from July through December doing an internship...and while I don't have any hard data on me I... every 330 or so I would have about 70-80 withheld in taxes- that seems to be about ~22-25%

Extrapolating that out its somewhere north of 700 dollars. I'm getting back all of the federal which is just shy of 300 (Unless the free filing at H&R block says otherwise 😉 ), but I have no idea how to do state so I'm not even bothering with it.


How do you guys who make so much, and are single, get away with such low tax rates?
 
Originally posted by: Shivetya
for tax rate are you including all the money going into SS/Medicare (to include what your employer pays?)
Click to expand...

Self employed pay it at tax time plus what the employer share is.

 
Originally posted by: magomago
I have no idea how you guys are getting off with 13% or so...I netted about 3.2K from July through December doing an internship...and while I don't have any hard data on me I... every 330 or so I would have about 70-80 withheld in taxes- that seems to be about ~22-25%

Extrapolating that out its somewhere north of 700 dollars. I'm getting back all of the federal which is just shy of 300 (Unless the free filing at H&R block says otherwise 😉 ), but I have no idea how to do state so I'm not even bothering with it.


How do you guys who make so much, and are single, get away with such low tax rates?
Click to expand...
I do not know about those that have stayed signle.

Many people have been able to utilize tax breaks that Congress over the years has added as "bribes" to the middle class.

 
Originally posted by: magomago
I have no idea how you guys are getting off with 13% or so...I netted about 3.2K from July through December doing an internship...and while I don't have any hard data on me I... every 330 or so I would have about 70-80 withheld in taxes- that seems to be about ~22-25%

Extrapolating that out its somewhere north of 700 dollars. I'm getting back all of the federal which is just shy of 300 (Unless the free filing at H&R block says otherwise 😉 ), but I have no idea how to do state so I'm not even bothering with it.


How do you guys who make so much, and are single, get away with such low tax rates?
Click to expand...

It's called deductions. There are TONS. One example is the new long distance credit. If you had long distance service on either your home phone or your land line at home, whether you used it or not, theres a credit. A credit reduced tax liability. Although the LD credit is small, they all add up. Like I said before, I dont have a home or kids (which are HUGE credits) and after all was said and done my taxable income is about 65% of my gross. *shrug*
 
Originally posted by: magomago
I have no idea how you guys are getting off with 13% or so...I netted about 3.2K from July through December doing an internship...and while I don't have any hard data on me I... every 330 or so I would have about 70-80 withheld in taxes- that seems to be about ~22-25%

Extrapolating that out its somewhere north of 700 dollars. I'm getting back all of the federal which is just shy of 300 (Unless the free filing at H&R block says otherwise 😉 ), but I have no idea how to do state so I'm not even bothering with it.


How do you guys who make so much, and are single, get away with such low tax rates?
Click to expand...

Are you including social security?

Cuz I'm pretty sure the others aren't.

(You note that you're getting all the federal back, that leaves just SS (7.65%) and state w/h)

Fern
 
Total joint take home was about 95k. I managed to get my taxable down to 59k and got over 4k back both state and federal.
 
Hmm, 75k in actual earned income. Sold a house with 100k in capital gains that ended up being exempted. I held my regular withholdings for my two kids, both adopted so I applied that credit at the end of the year and used Itemized deductions, blah blah. 8k back between state and federal.

I know I know I shouldn't be letting the Gov use that money interest free but the uncertainty of the capital gains and the uncertainty of the adoption credit prompted me to go with the suggested withholdings.
 
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