And we miss Coachella, much like the deserts miss the rain.

[insbordnat]

It really fucking sucks when you just get into a higher tax bracket and end up paying more in taxes so that your take home pay is actually less than what you would have made had you been in the next bracket down.

Wife is a realtor, so self employed. The trick we learned to use is to hold all checks, if you can afford to, that come in late in the year(mid november/december) and deposit them in the new year so they are not calculated into that tax year. Can help keep you in a lower tax bracket if you are right on the verge.

You'll find that being in a higher tax bracket doesn't really change your effective interest rate. As you make more, you'll pay more $ but also more as a percentage. Jumping to the next bracket doesn't cause a sudden jump in your effective rate. For example, if you make $75k, you'll pay about 19.57% effective rate in taxes. If you make 95k, your effective rate will be 20.94%. Yes, you're in a higher bracket, but there's also a 20k difference in income. So yes, progressive taxation sucks, but think of it as a continuum.

Consider this - $87,849 (right below the 25%/28% bracket cutoff) - effective rate of 20.37%. $87,851 (right above the cutoff) - 20.37%. No difference. You'll pay $1 more dollar in taxes. It also stands to reason that the more you make, the more deductions you typically have, and thus those will lower your effective rate even more.

[mountmccabe]

I agree with insubordnat.

Tax brackets only matter for the money in that bracket. We have marginal taxes. These numbers are for 2013 taxes for single filers but marginal taxes are not new and this applies to married, head of household, etc.

2013 Tax Tables (incomplete)
10% $0 to $8,925
15% $8,925 to $36,250
25% $36,250 to $87,850
28% $87,850 to $183,250

If your taxable income was $36,000

• $8,925 gets taxed at 10% = $893
• The next chunk is for each dollar from $8,926 to $36,000. That $27,075 gets taxed at 15% = $4061
• Total is $4,954, making your net $31,046

And if your taxable income was $37,000

• $8,925 gets taxed at 10% = $893
• The next chunk is for each dollar from $8,926 to $36,250. That $27,325 gets taxed at 15% = $4099
• The final $750 gets taxed at 25% = $188
• Total is $5,180, making your net $31,820

So making $1,000 more nets you $774 more money after taxes. On that $1000 you paid just over 20% in taxes, which makes sense as some of that money was taxed at 15% and the rest at 25%.

If your taxable income is higher, all things being equal, you will end up with a higher net.



I am not a tax professional. There may be various other factors, deductions you can't take, etc. You are free to pay more in taxes as a donation if you wish.

[mountmccabe]

Though I can see how your year to year fraud could mean you could keep a bit more.

If you knew it your taxable income would go like:

Year 1 - $37,250
Year 2 - $35,000

That last $1,000 in Year 1 would be taxed at 25%, so you'd keep $750.
But if you held that $1,000 back and counted it as Year 2 money then it'd only be taxed at 15%, meaning you'd keep $850 of it and you get $100 more over the two years.

It is unlikely you'd make $100 in interest, etc. on that $1,000 by depositing it earlier so as long as you don't forget to cash a check, don't get caught and know that it's going to matter (some years over a bracket line, some years under) then I can see how it would work.

[bmack86]

I get why you do it Steve, but I really fucking hate tax fraud. I mean, the roads suck, the infrastructure is fucked and yet people keep decrying taxes. How the hell are we going to fix stuff without the money to fix it?

Show me how I'm wrong. Someone.

[fiopadp7791]

I get why you do it Steve, but I really fucking hate tax fraud. I mean, the roads suck, the infrastructure is fucked and yet people keep decrying taxes. How the hell are we going to fix stuff without the money to fix it?

Show me how I'm wrong. Someone.

I always wonder that too... I always think the same people that want lower taxes are the same ones that bitch that class-rooms are over-crowded, the roads have too many pot-holes, and there's too much crime. Hmmm... how does that stuff get paid for?

[SoulDischarge]

Alright, count me out for another year. I decided to go do some parties in Miami in late March around my birthday and visit a good friend of mine instead. I really love the lineup and there are bands it is going to absolutely destroy me not to see, but my friend and I had been trying to work out something to do together for like 2 years now, and it was just going to be a real strain to get us both to Coachella. It's just too pricey and the hassle and uncertainty of dealing with trying to secure tickets when they're sold out isn't something I'm very into dealing with when trying to work out a vacation. Also, I can't say I'm all that bummed about choosing to see some of my favorite DJs do extended sets all night long and the allure of techno pool parties over spending four days camping in the desert for a sold out festival where most of my favorite bands are going to get less than hour to play. I wish I could swing both, and this year's lineup is making me inclined to spring for the presale payment plan for next year coming next summer, but I'm fairly happy with my choice for now.

[FEELS]

Awh man, you're another person I was hoping on meeting at the boardie group photo!

[gaypalmsprings]

I guess the Official Gay Orgy is going to be kinda small this year.

[eskamo951]

Missing my first year since I started attending in 2008. It's rough. Every warm day that allows me to drive with my windows down, I think "Coachella is coming!" and then remind myself that I'm not going.