GRS Home  Forum Home
Bank Rates Center
   Savings Account Rates
   Money Market Rates
   Highest CD Rates
Insurance Rates Center
  Auto           Health
   Life              Home
Mortgage Rates Center
  Mortgage Rates
  Mortgage Quotes

Last visit was:
A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Tue Jul 29, 2014 10:05 pm




Post new topic Reply to topic  [ 17 posts ]  Go to page Previous  1, 2
Author Message
 Post subject: Re: Our bumpy journey, my introduction to the forums...
PostPosted: Thu Oct 04, 2012 11:30 am 
Moderator

Joined: Wed Sep 23, 2009 9:01 am
Posts: 5293
bpgui wrote:
Bonuses aren't taxed at a higher rate. They just have different withholding requirements which usually cause more to be withheld, but you get the overage back when you file your taxes.


And, if I'm not mistaken, there are ways to reduce the withholding if you are willing to do some work figuring out how much should be withheld. That can be useful especially if your income is lumpy.

A 46% tax withholding still does not make sense to me. Mine works out to be about 20%. My income is a little higher than what you stated and my wife's is about the same. We live in a state with lower taxes. But still, it's really hard to get from 20% to 46% even if you have to pay the employer portion of SS. Are you computing the 46% on your net income or gross?

I think it is important for you to understand this tax/withholding situation. Your statements suggest you don't understand it well and I think that might be leading you to pay and have withheld far more than you are obligated to. If it truly is that high then you really ought to be looking into various deferred compensation options and 401(k)s.

The flip side of having to pay the self employment tax would be eligibility for various forms of tax deferral like SEP-IRAs and Keogh plans to shelter income from tax. If your tax situation truly is as you described it, you ought to be in a CPAs office this week looking into how to fix it!


Top
Offline Profile E-mail   
 Post subject: Re: Our bumpy journey, my introduction to the forums...
PostPosted: Fri Oct 05, 2012 11:04 am 

Joined: Wed Oct 03, 2012 8:22 am
Posts: 5
Bichon Frise wrote:
You may bitch about the state income tax, but you also have no sales tax in Oregon. And you need to look at property taxes as well. I used to live in Texas and I owned a 2000 sq ft home on a 25'x130' lot. Property taxes were over $6500/yr and sales tax was 8.25%.



I have property taxes... over $6k a year.. I know I'm not spending enough on food and goods to cover the amount I hand to Oregon on 10.8% of my income.. Just sayin' :rock:


Top
Offline Profile E-mail   
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 17 posts ]  Moderators: bpgui, JerichoHill Go to page Previous  1, 2


Who is online

Users browsing this forum: No registered users and 16 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Theme created StylerBB.net & kodeki