Tax Year 2006

[gcy]

moving to nevada and get away from california tax.
😀

 

[imported_Lothar]

Originally posted by: gcy
moving to nevada and get away from california tax.
😀

You should move to Alaska, New Hampshire, or Delaware 😉

 

[wetech]

before I moved out of the country, my rate was in the 17-18% range. Now, like I said above, it's more like 37%. The main cause is that Japanese taxes are a good deal higher then US taxes. But even still, the US gov't wanted their piece as well. I don't understand why expats are double-taxed.

 

[Stunt]

Ontario Canada here.
single 24 year old.
$63,000 gross
$14,255 taxed
plus 14% sales tax on all purchases except food
effective tax rate: 23% on income, 34% including sales tax.

 

[Rainsford]

Originally posted by: Lothar

Originally posted by: gcy
moving to nevada and get away from california tax.
😀

You should move to Alaska, New Hampshire, or Delaware 😉

Of course the problem is that you'd have to LIVE in those states. 😉

 

[Rainsford]

Originally posted by: Lothar

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!

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.

Delaware might be great, except the commute would be a royal pain in the ass for me.

 

[Fern]

Originally posted by: wetech
before I moved out of the country, my rate was in the 17-18% range. Now, like I said above, it's more like 37%. The main cause is that Japanese taxes are a good deal higher then US taxes. But even still, the US gov't wanted their piece as well. I don't understand why expats are double-taxed.

The US government should be allowing you both an earned income exclusion under section 911 (if you lived and worked abroad for a sufficient period), and a foreign tax credit for taxes paid or accrued to Japan. If you lived & worked abroad, seems to me you wouldn't be reuired to file till June 15 (unlike 4/15 for domestic-based taxpayers).

Double taxation (two countries taxing the same income) can almost always be avoided by use of domestic (US income tax law) statutes, or income tax treaty provisions.

The USA also has treaty provisions etc to avoid double taxation under social security (both income tax treaties and "totalization agreemenst").

Perhaps something is wrong, or your post lacks suffieicent information for me to make a reasonable conclusion.

For many years my specialty was international taxation, including expatriate taxation (US individuals on foreign work assignments). I've worked in Paris, Berlin, NYC etc. I hope you have a tax CPA sufficienty familiar with the relevant rules/statutes to help ensure you aren't paying too much (getting double-taxed etc.)

Fern

 

[wetech]

Originally posted by: Fern

Originally posted by: wetech
before I moved out of the country, my rate was in the 17-18% range. Now, like I said above, it's more like 37%. The main cause is that Japanese taxes are a good deal higher then US taxes. But even still, the US gov't wanted their piece as well. I don't understand why expats are double-taxed.

The US government should be allowing you both an earned income exclusion under section 911 (if you lived and worked abroad for a sufficient period), and a foreign tax credit for taxes paid or accrued to Japan. If you lived & worked abroad, seems to me you wouldn't be reuired to file till June 15 (unlike 4/15 for domestic-based taxpayers).

Double taxation (two countries taxing the same income) can almost always be avoided by use of domestic (US income tax law) statutes, or income tax treaty provisions.

The USA also has treaty provisions etc to avoid double taxation under social security (both income tax treaties and "totalization agreemenst").

Perhaps something is wrong, or your post lacks suffieicent information for me to make a reasonable conclusion.

For many years my specialty was international taxation, including expatriate taxation (US individuals on foreign work assignments). I've worked in Paris, Berlin, NYC etc. I hope you have a tax CPA sufficienty familiar with the relevant rules/statutes to help ensure you aren't paying too much (getting double-taxed etc.)

Fern

We have a subsidiary of Deloitte doing the taxes of all the expats in the office. They're very familiar with international taxes. We get an automatic 6-mo extention for filing US taxes. Unfortunately, even when deducting Japanese taxes paid, income exclusion and housing allowance, the US gov't is still getting a piece (mainly due to the ridiculous rents in Tokyo).

 

[GroundedSailor]

A good year. Joint gross nearly 131K (taxable only 82K), fed+state tax 17.5K, effective tax rate about 13.4%. Zero AMT, but lots of deductible expenses including one child full time in college.

Can't complain. 🙂

 

[TraumaRN]

21 yr old college student
Grossed 21K
Unfortunately claimed by parents....
Getting about 600 back from State + Fed
City of Detroit I dont have to pay, but I don't get any money back either 🙁 Guessed they taxed at the perfect rate...

 

[ericlp]

I get a few K back.. Woulda been more but I sold some property at a profit and well... Capital gains... Sigh....

 

[imported_Shivetya]

Originally posted by: Fern

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?

Uh, that 7.65 is really double that as your employer pays the same amount you do.

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