Annual Tax Report

My taxes are filed.  I think I'm becoming more efficient every year at preparing them, so it only took a couple hours this year.  Due (mostly) to a raise in my wages at work, I paid several thousand more dollars in federal income tax this year, but my refund was only a couple hundred dollars bigger.  I did get a bigger salary this year, but I still like to complain about my $50's and $100's making my wallet too thick.

My effective tax rate for 2011 was 14.93%.  Since I got a raise, I don't suppose I can attribute all of that to President Obama.  For comparison purposes, it was 13.85% in 2010, and in 2008 it was 12.77%.  Similar to last year, this does not include the taxes I pay to the state (income and sales), social security, Medicare, and Medicaid taxes.  Once you add all of that in, my total effective tax rate is probably much closer to 27% or 30%.  So, I guess I'm working for the government for more than 1 week out of every month.

Remember:  Almost all tax bracket percentages will increase by 3% for 2013.  That's a significant chunk of change!  So enjoy the low taxes you have in 2012, and be sure to vote wisely in the November elections if you have a vested interest in how much tax you pay.  This nation is a representative republic, not a democracy, so you need to choose your representative wisely.

It amused me that the government gives you an option to purchase savings bonds with your tax refund.  You don't really want your money back, right?  You just want to donate it to the government in a different form.....

I have not been impressed with my state tax situation the last couple of years.  No refund, and I have to pay a very small amount in.  This is mostly due to the fact that I now make too much money, and they don't allow me to claim a homestead tax credit like I used to.  Plus, my diamond shoes are too tight.

Here's an interesting chart I got from my online tax preparing software.  Note that 1/5 of your taxes go to national defense, and 56% of your taxes go to social programs.  So.....if they're cutting budgets, those are the two biggest pieces of pie they're going to have to cut a few things out of.  The truth is harsh sometimes, but that doesn't mean it's not the truth.