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Personal Finance (Not Investing) • What was your effective tax rate in 2023?

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I don't know how useful this will be as there are so many variables.

Ours is 13.5%

I don't know your circumstances, but things that affect our federal effective rate include -

Only 85% of SS is taxed.
I'm a small business owner so get a substantial QBI deduction.
I'm a small business owner so get the self-employed health insurance deduction.
We've been doing around $90K in Roth conversions. Our effective rate would be lower without them.
We're both over 65, so our standard deduction is $3700 more than someone under 65.

My Illinois tax rate is low because our pension, social security, and Roth conversions are not taxable income.

Statistics: Posted by Artful Dodger — Sun Apr 21, 2024 5:26 pm — Replies 93 — Views 5506



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