Pilot killing taxes?
02-19-2019, 06:56 AM
#11
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Joined APC: Mar 2014
Posts: 3,094
Originally Posted by ShyGuy
How do you owe 60k to the govt? 
For some perspective a MFJ couple with no kids or deductions would have a federal tax liability of ~$60k when earning $300k.
02-19-2019, 06:59 AM
#12
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Posts: 1,681
I don’t know how anyone comes up with enough legit deductions to exceed the standard now.
I guess it would be possible with a side business.
Of course, you could have had some crazy property and state tax deduction. I’m glad they got rid of that. Nothing personal, but it was never right for us in low tax states to subsidize people in states where they pay 5x the tax
I guess it would be possible with a side business.
Of course, you could have had some crazy property and state tax deduction. I’m glad they got rid of that. Nothing personal, but it was never right for us in low tax states to subsidize people in states where they pay 5x the tax
02-19-2019, 07:00 AM
#13
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Joined APC: Mar 2014
Posts: 3,094
Originally Posted by rickair7777
Yeah your accountant can predict your taxes and tell you how much to withhold.
It's actually financially not bad to sit on that cash and earn interest for the year, as long as you're disciplined enough to know how big a check you're going to have to write in Apr, and can save up for it. I'd be perfectly happy with a $50k interest free loan from uncle, just wouldn't trust my wife with it...
It's actually financially not bad to sit on that cash and earn interest for the year, as long as you're disciplined enough to know how big a check you're going to have to write in Apr, and can save up for it. I'd be perfectly happy with a $50k interest free loan from uncle, just wouldn't trust my wife with it...
02-19-2019, 07:09 AM
#15
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Joined APC: Nov 2016
Position: 6th place
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Originally Posted by Name User
Yep he isn't telling the whole story here. Either he had a capital gain or didn't pay any taxes at all throughout the year. Losing 18k in write offs would cost around $4k at most pilot tax brackets.
For some perspective a MFJ couple with no kids or deductions would have a federal tax liability of ~$60k when earning $300k.
For some perspective a MFJ couple with no kids or deductions would have a federal tax liability of ~$60k when earning $300k.
I’m guessing he paid 60k state and federal tax total throughout the year. That’s not how much he owed when he filed his return.
02-19-2019, 07:11 AM
#16
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Joined APC: Mar 2014
Posts: 3,094
Originally Posted by jcountry
I don’t know how anyone comes up with enough legit deductions to exceed the standard now.
I guess it would be possible with a side business.
Of course, you could have had some crazy property and state tax deduction. I’m glad they got rid of that. Nothing personal, but it was never right for us in low tax states to subsidize people in states where they pay 5x the tax
I guess it would be possible with a side business.
Of course, you could have had some crazy property and state tax deduction. I’m glad they got rid of that. Nothing personal, but it was never right for us in low tax states to subsidize people in states where they pay 5x the tax
But, I semi agree with the mentality. Actually I think it should be swapped, we should pay far more to our local states and less to the feds. But, that's for another discussion.
02-19-2019, 07:16 AM
#17
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Posts: 3,094
Originally Posted by mainlineAF
I’m guessing he paid 60k state and federal tax total throughout the year. That’s not how much he owed when he filed his return.
Also there are ways to slowly transition off earned income that will lower your tax %. With what we earn right now, it would be smart to investigate those ways and invest in them vs buy new toys. IMO.
02-19-2019, 07:57 AM
#18
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Joined APC: Sep 2016
Posts: 6,716
Originally Posted by rickair7777
Yeah your accountant can predict your taxes and tell you how much to withhold.
It's actually financially not bad to sit on that cash and earn interest for the year, as long as you're disciplined enough to know how big a check you're going to have to write in Apr, and can save up for it. I'd be perfectly happy with a $50k interest free loan from uncle, just wouldn't trust my wife with it...
It's actually financially not bad to sit on that cash and earn interest for the year, as long as you're disciplined enough to know how big a check you're going to have to write in Apr, and can save up for it. I'd be perfectly happy with a $50k interest free loan from uncle, just wouldn't trust my wife with it...
02-19-2019, 08:14 AM
#19
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Joined APC: Mar 2006
Position: guppy CA
Posts: 5,160
I'm close to finishing my taxes.
I chose to convert ~$140K in my 401k to Roth so that got taxed at 35% and 37% (crossed into the 37% marginal bracket).
Looks like I'll pay ~$27K more in taxes than 2017. The Roth conversion added $50K to my tax bill. (90K x .35, 50K x .37) Without the conversion my tax bill would have decreased.
I converted the taxable 401k because we'll be in high tax brackets for the rest of our lives (two military pensions) and I have no doubt that they'll be going after high income families pretty hard in the future. Until now, we'd been subject to the Pease and PEP surtaxes - those went away with the tax cut. https://www.kitces.com/blog/how-the-...come-surtaxes/ That's gone for now, but I have no doubt some form of it will return in the future.
I chose to convert ~$140K in my 401k to Roth so that got taxed at 35% and 37% (crossed into the 37% marginal bracket).
Looks like I'll pay ~$27K more in taxes than 2017. The Roth conversion added $50K to my tax bill. (90K x .35, 50K x .37) Without the conversion my tax bill would have decreased.
I converted the taxable 401k because we'll be in high tax brackets for the rest of our lives (two military pensions) and I have no doubt that they'll be going after high income families pretty hard in the future. Until now, we'd been subject to the Pease and PEP surtaxes - those went away with the tax cut. https://www.kitces.com/blog/how-the-...come-surtaxes/ That's gone for now, but I have no doubt some form of it will return in the future.
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