Originally Posted by Shnurek
lol, like I said she has no idea of basic accounting nor do I agree with most of what she has to say. Its not overall, that's just federal income tax. KHE is smart he lives in a low state income tax state and probably doesn't have local tax rates and invests in a good accountant to maximize his deductions.
Right. That's just federal income tax. For example, in 2012, FICA is 7.65% and maxed out at $6,826.20 for $110,000. So you can add 7.65% to 21.26% overall tax if you're "single"
or 17.06% if you file "married filling jointly"
) if you make $100,000 in 2012.
I'm a chain and hospital pharmacist employee and file my own taxes, so I know the income tax system fairly well. Forms 1040 and Schedule A have everything in black and white!
The best advice that I can give someone on SDN is to write down what you think you can "earn" as a tax credit or deduct and then look into it to find out what you would qualify for.
Do your medical and dental expenses exceed 7.5% of your "adjusted gross income"? If not, then too bad.
Was your "adjusted gross income" over $109,000? If so, then you can't deduct mortgage insurance premiums. Too bad!
Sorry everyone... but you can't deduct student loan interest after your "modified adjusted gross" income exceeds $75,000 filling as a "single" or $150,000 as "married filling jointly".
I avoided AMT last year by only a couple grand... and I only made $170,000.
The key is to live in a low cost of living area or state. The more something costs you, the more you will pay in taxes whether it's paid via state income, property, or sales tax.