NYBoglehead wrote:Throw in another 7.65% for FICA and whatever you paid for state income taxes as well. .
No. Not even close. First of all, it's only 5.65% in 2012.
And it counts as 5.65% only if your only taxable income for the year was wage income, and you had less than $110.1K of it.
The rest of us, either with more than $110.1K in wage income, or at lot more of other flavors of income (e.g., dividends or cap gains or rent) didn't pay anything resembling 5.65% in FICA.
And the self-employed (earning less than $110.1K) paid far more.
My brother hasn't done Mom's 2012 income taxes yet, but her effective tax rate is 0% on maybe $90K-$100K AGI. (And 0% state. And No FICA either.) She'll be getting a refund, since some of her account custodians have been withholding tax on her RMDs.