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/biz/ - Business & Finance

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File: 204 KB, 1322x895, Screenshot 2018-04-10 at 6.02.05 PM.png [View same] [iqdb] [saucenao] [google]
8846166 No.8846166 [Reply] [Original]

How tf is my effective tax rate only 26.5%? Federal only is 28%. My state income tax is 7.15% + 3000 dollars.

I am a dependent and can't claim exemptions. I just used the standard deduction.

175k from crypto + 5k from wagecucking (kek)

>> No.8846254

>>8846166
$248 FICA on 180k income? Have fun at your audit.

>> No.8846290

>>8846254

You only pay FICA on earned income, not capital gains.

>> No.8846306

47789/180000=.265
Learn how marginal tax rates work.

>> No.8846377

>>8846166
Do you even know how tax brackets work? Not all your income gets taxed at 28%, only the amount that exceeds the lower brackets.

>> No.8846408

>>8846254
That is from my wageslave job. I earned 4.5k and they deducted the 248 automatically

>> No.8846429

>>8846377
lols no I do not. Just a lowly /sci/ NEET. This is good news

>> No.8846439
File: 130 KB, 1228x920, Screen Shot 2018-04-10 at 6.25.27 PM.png [View same] [iqdb] [saucenao] [google]
8846439

>>8846377
In other words your first 9325 gets taxed at 10%, 9236 - 37,950 gets taxed at 15%, and so on. Your whole stack doesn't get 28%, only the portion that spills over into that bracket.

>> No.8846461
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8846461

America your tax rates are a joke...

>> No.8846512
File: 534 KB, 1534x1559, 1523245386213.jpg [View same] [iqdb] [saucenao] [google]
8846512

>>8846166

The answer is the tax bracket you are in.

The first $10k or so capital gains are taxed at the lowest bracket, about 10%. The next $25 or so are taxed at the next highest bracket, about 20%... etc. up to your tax bracket which is taxed at probably 28-30%. (est)

The remainder is divided by your total cap gains and thats your "effective" tax rate

Looks good

>> No.8846533

>>8846461

This could mean a variety of things depending on your ideology and country lil dummy

>> No.8846541
File: 232 KB, 879x788, 1523125488653.png [View same] [iqdb] [saucenao] [google]
8846541

HOLD UP

you actually traceably cashed out $175k?

BAHAHAHAHAHAHAHAHAHAHAHAHA

>> No.8846623

>>8846439
>>8846512
thanks. Was unaware about this. Absolutely clueless with regards to personal finance but crypto has forced me to grow up

>>8846541
I've cashed out less than 10%. But I have my identity verified on coinbase. The IRS has contracted a company that can do blockchain analysis. I could never get away with it

>> No.8846733
File: 72 KB, 813x551, 08f.jpg [View same] [iqdb] [saucenao] [google]
8846733

>>8846541
h-ha, yeah what a moron who would ever sell bitcoin at $18,000 when taxes are so high am I right guys cheap coins at $6795

>> No.8846825
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8846825

>>8846733
>my ATH was 450k