Effective Tax Rate For My Dad

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rockthisworld
Posts: 27
Joined: Wed Oct 17, 2018 9:37 am

Effective Tax Rate For My Dad

Post by rockthisworld » Wed Sep 11, 2019 9:23 am

My dad wants to budget how much his taxes will be in retirement coming up. He needs the help of you amazing bogleheads out there

State taxes: 5.10%
Social Security Income about $15000 a year
Plus LTCG: about $10500 a year
Dividends non qualified: About $4000 a year

He is filing as single thank you.
He would like to know total taxes for federal and state.

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RickBoglehead
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Joined: Wed Feb 14, 2018 9:10 am

Re: Effective Tax Rate For My Dad

Post by RickBoglehead » Wed Sep 11, 2019 9:29 am

This can be easily determined using tax calculators available on many websites. You need to utilize a state-specific site to know how a state will tax him - Georgia would exempt most of his income, Vermont would not.

This is a good site to start at: https://smartasset.com/retirement/retirement-taxes

Federal Tax Brackets for single filers - https://www.irs.gov/newsroom/irs-provid ... -year-2019

His long term gains would not be taxed based on his income not exceeding $39,375.
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Topic Author
rockthisworld
Posts: 27
Joined: Wed Oct 17, 2018 9:37 am

Re: Effective Tax Rate For My Dad

Post by rockthisworld » Wed Sep 11, 2019 9:31 am

Thank you :)

trueblueky
Posts: 1560
Joined: Tue May 27, 2014 3:50 pm

Re: Effective Tax Rate For My Dad

Post by trueblueky » Wed Sep 11, 2019 6:45 pm

rockthisworld wrote:
Wed Sep 11, 2019 9:23 am
My dad wants to budget how much his taxes will be in retirement coming up. He needs the help of you amazing bogleheads out there

State taxes: 5.10%
Social Security Income about $15000 a year
Plus LTCG: about $10500 a year
Dividends non qualified: About $4000 a year

He is filing as single thank you.
He would like to know total taxes for federal and state.
To see if SS is taxed, add one-half of SS to other income. $14,500 + $7500 = $22,000. This is less than $25,000, so SS is not taxed.

Income = $14,500. Standard deduction $12,000 (more if 65 or older). Taxable income = $2500.
This would be the LTCG. Tax on that is 0%. No federal income tax.

Topic Author
rockthisworld
Posts: 27
Joined: Wed Oct 17, 2018 9:37 am

Re: Effective Tax Rate For My Dad

Post by rockthisworld » Wed Sep 11, 2019 7:00 pm

Wait so they dont go off your social security income total plus all of your income? Why is it half?

trueblueky
Posts: 1560
Joined: Tue May 27, 2014 3:50 pm

Re: Effective Tax Rate For My Dad

Post by trueblueky » Wed Sep 11, 2019 8:39 pm

rockthisworld wrote:
Wed Sep 11, 2019 7:00 pm
Wait so they dont go off your social security income total plus all of your income? Why is it half?
Congress has chosen to treat some sources of income differently.

https://www.irs.gov/publications/p915#e ... k100097869

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