2013 taxes

[SoapyCy]

Just a vent.

Got down with my taxes this morning and they give you a "compare to US average" to see where you stand with the rest of 'murica.

My wife and I made more than the average household income but our dividends were about 1/4 the average. I save a lot with my brokerage firm so I am wondering how all these people with less income than we have are making so much?

Anyone else find anything interesting about themselves by doing taxes this year?

 

[kingcy]

Just a vent.

Got down with my taxes this morning and they give you a "compare to US average" to see where you stand with the rest of 'murica.

My wife and I made more than the average household income but our dividends were about 1/4 the average. I save a lot with my brokerage firm so I am wondering how all these people with less income than we have are making so much?

Anyone else find anything interesting about themselves by doing taxes this year?

People making less than you do probably don't invest much. It is the people making more than you that invest.

 

[Doc]

It's an average, not a median. It's not like people with less income than you have more dividends -- it's just that some people who make more dividends relative to income are bumping the average up.

 

[3TrueFans]

I found out that I wish I had more money.

 

[Ciclone]

Maybe you're just investing in more growth stocks with lower dividends.

 

[aeroclone]

It's an average, not a median. It's not like people with less income than you have more dividends -- it's just the rich people are bumping the average up.

I do what I can.



Also, is that a Mighty Ducks 2 avatar? Awesome.

 

[CyCloned]

Some of it depends on the fact that some people are heavy investors in the stock market and do not have money in savings accounts or CD at all. The pitiful interest rates that investors are seeing, it looks like a good aggressive strategy. Many of these people tend to target investments that traditionally pay dividends. A lot of retired folks have pretty impressive portfolios.

 

[agardini]

Hmmm... Who do you use for taxes? I did not get anything like that for my taxes. I was surprised on my taxes how low my effective tax rate was this year.

 

[MeanDean]

Perhaps when the retirees are rolled into the equation (little or no income but relatively higher dividends) it probably skews the averages versus typical working families.

 

[wxman1]

It is interesting to see the comparison but I took it with a grain of salt since each situation is different. BTW I used Tax Act so I don't know if each software is different.

 

[Wesley]

Work harder. Save more. The American Way.

 

[SoapyCy]

I was surprised on my taxes how low my effective tax rate was this year.

My effective tax rate was about 18%.

BTW I used Tax Act so I don't know if each software is different.

same here

 

[2forISU]

Can you write off financial advisor fees?

 

[agardini]

My effective tax rate was about 18%.



same here

That might be why I didn't get that, I use H&R Block. I had medical deductions, full year of home mortgage deduction, new Cyclone club charitable giving which is probably why my effective tax rate was at 9%. Still surprised the hell out of me.

 

[SoapyCy]

Yeah, our mortgage interest isn't that much on a 100k loan and we had no deductible medical bills. Did have a business loss of 3,500 but other than that no real deductions or credits. Not sure why mine was so "high" but that's okay. Some people go over their taxes with a fine-tooth comb several times but I figure whatever $10 or $20 it might create isn't worth the hassle.

 

[Cyclonepride]

Maybe you're just investing in more growth stocks with lower dividends.

Yeah, my investments are heavy on dividend paying stocks as a more conservative option. I'm guessing that is the difference here.

 

[dmclone]

First time I've ever not received a refund. I sold a bunch of employee stock and am also doing a lot more Roth contributions versus tax differed. It sucks.

 

[CYme]

Keep in mind a large portion of income for those in the northeast is due to dividends. Gross wage differentials are not high enough to explain the northeast COL.

 

[agardini]

I almost feel like I'm cheating the gov out of money with all my deductions. But they are all accurate deductions and I probably left a little bit on the table.

 

[Rabbuk]

I almost feel like I'm cheating the gov out of money with all my deductions. But they are all accurate deductions and I probably left a little bit on the table.

You a farmer then?