The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  • Join 50,000+ entrepreneurs who are earning their freedom and living their dream.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane) Register
    Registering for the forum removes this block.

RANT Should I be paying this much in taxes?!?

AF77

Contributor
Mar 8, 2019
57
34
47
I make 134,000 a year on paper.

My take home every other week is 4,124.00
My actual income before taxes is 5,108.00

I get over 900 dollars taken out every two weeks! That’s a F*cking fifth of my income.

AND, I always OWE money to the irs at the end of the year.

I have two small children and I am married.

Edit: I was a bit off, Exact numbers:

 
Last edited:

Become a Fastlane INSIDER to view the forum ad free.

AF77

Contributor
Mar 8, 2019
57
34
47
I can’t believe I don’t get any of that back and I owe money every year.


Sent from my iPhone using Tapatalk
 

ZCP

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Summit Attendee
Speedway Pass
Oct 22, 2010
2,341
7,635
1,736
Woodstock, GA
www.phoenixengineering.com
are you in the US? go to irs.gov .... download form 1040 and the instructions. physically fill out your tax return and see 'why'. then run a few scenarios and see what other options for income vs how it is taxed ....
then get w/ your tax professional and see if there is something you are missing....

the gist .... w2 income is heavily taxed. THEN you pay for your stuff w/ post tax money. .... not fastlane
 

MJ DeMarco

Raving Lunatic
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Summit Attendee
Speedway Pass
I've Read UNSCRIPTED
Read Millionaire Fastlane
Jul 23, 2007
28,276
94,524
3,751
Phoenix, AZ
getUnscripted.com
I'm actually surprised you're not paying more.
 

AF77

Contributor
Mar 8, 2019
57
34
47
I'm actually surprised you're not paying more.
OUCH.

From the man himself.

So basically this is normal, I should continue to feel robbed, and assume suicide is the only escape?

Every time I get a 6% raise it gets cut in half by taxes.
 
Last edited:

Thimar Laouichi

New Contributor
Read Millionaire Fastlane
Mar 7, 2019
5
4
16
To complain about the tax is useless, it's something that everyone endures.
For your road to wealth, it is better not to complain.:)
 

biophase

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Summit Attendee
Speedway Pass
I've Read UNSCRIPTED
Jul 25, 2007
6,351
28,196
5,083
Scottsdale, AZ
If you are only paying 20% in taxes, you will definitely owe more at the end of the year.

In your tax bracket it's common to have about 33% taken out of your paycheck and then get back a little bit of money at the end of the year.

But your overall yearly tax from your paycheck will be between 25-30% usually. So expect to have more taken out as you move up the income ladder.
 

AF77

Contributor
Mar 8, 2019
57
34
47
If you are only paying 20% in taxes, you will definitely owe more at the end of the year.

In your tax bracket it's common to have about 33% taken out of your paycheck and then get back a little bit of money at the end of the year.

But your overall yearly tax from your paycheck will be between 25-30% usually. So expect to have more taken out as you move up the income ladder.
Very useful knowledge.
So essentially with minor 3%-6% bumps, I’m making 5 dollars more a week.
 

Become a Fastlane INSIDER to view the forum ad free.

jpn

Bronze Contributor
FASTLANE INSIDER
Speedway Pass
May 6, 2017
105
308
174
Netherlands
Interesting, I just ran your income through an income tax calculator for my country.

Of the 5108 you get every 2 weeks you'd take home 2835. Also sales tax in this country is 21%.

Only 2 things are certain in life, death and taxes. And it could be a lot worse.
 

AF77

Contributor
Mar 8, 2019
57
34
47
Interesting, I just ran your income through an income tax calculator for my country.

Of the 5108 you get every 2 weeks you'd take home 2835. Also sales tax in this country is 21%.

Only 2 things are certain in life, death and taxes. And it could be a lot worse.
I don’t live in a socialist or communist country.
 

Rabby

Silver Contributor
FASTLANE INSIDER
Speedway Pass
I've Read UNSCRIPTED
Aug 26, 2018
421
952
334
Florida
Cut to scene - government bureaucrats dancing to the song "We're in the Money." Tears stream down citizen's faces as the crats enjoy cake and champagne. Ragamuffin children stand outside, hungry and dirty.

Enter AF77, eyes wide.

AF77: What in the world is going on here?

Bureaucrat #1: No big deal, mate! We're just having a celebration, that's all.

AF77: But who's paying for all this?!

Bureaucrat #2: Why, you are mate!

Bureaucrat Chorus: Laughter.
 

Rabby

Silver Contributor
FASTLANE INSIDER
Speedway Pass
I've Read UNSCRIPTED
Aug 26, 2018
421
952
334
Florida
Thread is derailed in 3... 2... 1...

Ok but before that happens. Seriously, it's worth talking to a CPA. Make sure you're taking the write-offs you can take, and do some research on tax credits and deductions that apply to your industry. For several years I was able to take a "domestic production" credit which was great. In the US. It's been repealed now I think, but it was good while it lasted, and most people didn't even know it existed.
 

jpn

Bronze Contributor
FASTLANE INSIDER
Speedway Pass
May 6, 2017
105
308
174
Netherlands
Thread is derailed in 3... 2... 1...

Ok but before that happens. Seriously, it's worth talking to a CPA. Make sure you're taking the write-offs you can take, and do some research on tax credits and deductions that apply to your industry. For several years I was able to take a "domestic production" credit which was great. In the US. It's been repealed now I think, but it was good while it lasted, and most people didn't even know it existed.
My joking comments aside, @Rabby is giving the most useful advice. Regardless of country, once you hit a certain tax bracket, a tax advisor will save you more money than they cost. And it they don’t at least you know you’ll have done all you legally can. I’m sure your tax system also has funky deductibles you may not be aware of that could reduce your tax burden.
 

CareCPA

Gold Contributor
FASTLANE INSIDER
Speedway Pass
May 2, 2017
629
2,133
550
30
Pennsylvania
My joking comments aside, @Rabby is giving the most useful advice. Regardless of country, once you hit a certain tax bracket, a tax advisor will save you more money than they cost. And it they don’t at least you know you’ll have done all you legally can. I’m sure your tax system also has funky deductibles you may not be aware of that could reduce your tax burden.
In the US, if you're just a W-2 employee, then there isn't much tax planning. Not worth the cost of a CPA unless you're $300k plus (then you get into conservation easements and other fun things).

Own a business. Otherwise, you're SOL.
 

Become a Fastlane INSIDER to view the forum ad free.

ExaltedLife

Silver Contributor
Speedway Pass
I've Read UNSCRIPTED
Nov 10, 2015
317
622
272
27
No, you shouldn't be taxed at all, but you are. Look into how to dodge them without getting caught.
 

focusedlife

Bronze Contributor
Mar 16, 2013
87
147
135
Brooklyn, NY
WizBangLink.com
No, you shouldn't be taxed at all, but you are. Look into how to dodge them without getting caught.
Our government is just too F*ckin' big, bureaucratic and inefficient.

This book has helped me see the potential in having something else in place other than the 2 choices we seem to have now.

Something needs to change.

Just read the description alone and see if it doesn't intrigue...

I'm a convert (although I do dig what Andrew Yang has had to say, recently).

 

ExaltedLife

Silver Contributor
Speedway Pass
I've Read UNSCRIPTED
Nov 10, 2015
317
622
272
27
Our government is just too F*ckin' big, bureaucratic and inefficient.

This book has helped me see the potential in having something else in place other than the 2 choices we seem to have now.

Something needs to change.

Just read the description alone and see if it doesn't intrigue...

I'm a convert (although I do dig what Andrew Yang has had to say, recently).

Libertarians are onto the right track but not quite - they don't have much of a political philosophy. Read "Capitalism: The Unknown Ideal".
 

AF77

Contributor
Mar 8, 2019
57
34
47
Our government is just too F*ckin' big, bureaucratic and inefficient.

This book has helped me see the potential in having something else in place other than the 2 choices we seem to have now.

Something needs to change.

Just read the description alone and see if it doesn't intrigue...

I'm a convert (although I do dig what Andrew Yang has had to say, recently).

I overly enjoyed law abiding citizen until the end; guess who I was rooting for?
 

focusedlife

Bronze Contributor
Mar 16, 2013
87
147
135
Brooklyn, NY
WizBangLink.com
Libertarians are onto the right track but not quite - they don't have much of a political philosophy. Read "Capitalism: The Unknown Ideal".
Have you read the description?

BTW, what do you mean they don't have a political philosophy?

The gist is you get to decide what you do with your life without much government interference, intervention nor meddling.

Why do we need big government to decide what's right for you?

It assumes you're smart enough to make decisions for yourself without NEEDING to be taxed to oblivion nor fear being bullied by your government.

Just sayin'
 

AfterWind

Bronze Contributor
Speedway Pass
Jul 23, 2017
76
156
144
21
Romania
In my country it's more like 30%, no matter the rate they pay you.

Although, I'm sure there are some workarounds in Europe, whenever I see, for example 70k euros a year salary, I just divide that number by 2 because taxes. Better underestimate than overestimate in this case.

I think 20% is okay.
 

GlobalWealth

Legendary Contributor
FASTLANE INSIDER
Summit Attendee
Speedway Pass
I've Read UNSCRIPTED
Read Millionaire Fastlane
Sep 6, 2009
2,417
5,002
1,164
Latvia
www.globalwealthprotection.com
In the US, if you're just a W-2 employee, then there isn't much tax planning. Not worth the cost of a CPA unless you're $300k plus (then you get into conservation easements and other fun things).

Own a business. Otherwise, you're SOL.
I second this.

As long as you remain an employee you don't have much or any control.

That's the "beauty" of payroll withholding from the government perspective.

They've got you by the short and curlies.

Once you have a business, even a side gig, your options for tax minimization open up a lot.

BTW, you didn't say... Where do you live? Country, state?

Sent from my VTR-L29 using Tapatalk
 

GoGetter24

Gold Contributor
Speedway Pass
Oct 8, 2017
571
1,082
365
Various
:rofl:
When someone complains about a 18% tax burden... when you know people paying about 50%.

And then you remember you pay way more than 18% too... :mad:
 

BlueMoon

Contributor
FASTLANE INSIDER
Jun 3, 2018
23
77
27
Earth
With all respect but this seems quite low. Here you pay 51% of every 'dollar' you make.
 

GoGetter24

Gold Contributor
Speedway Pass
Oct 8, 2017
571
1,082
365
Various
With all respect but this seems quite low. Here you pay 51% of every 'dollar' you make.
Even the Helots, the slaves of the Spartans, got to keep half of what they made.

Interestingly, they couldn't own weapons either -- only the state (the Spartans) could do that. For reasons not unconnected to the 50% tax bit...
The more things change the more they stay the same.
 

eliquid

( Jason Brown )
FASTLANE INSIDER
EPIC CONTRIBUTOR
Summit Attendee
Speedway Pass
Read Millionaire Fastlane
May 29, 2013
1,374
6,535
1,496
Louisville - Kentucky
www.serpwoo.com
I will tell you this, talking to a CPA/tax professional is NOT enough.

I've had/talked to dozens of CPA's and tax attorneys over the last decade. All of them suggest something different and none of them have suggested the same thing.

Many just run your numbers with no advice or generic vanilla advice. Others don't understand or know a lot about your business ( crypto, SaaS models, etc ). Some only suggest what someone else in their firm told them.

You need to kiss a lot of frogs and do this often, to find the right person.

I had to dig into things myself and learn a lot on my own, then go to the people I talk to and ask more questions in order to get the right strategies for me. If I didn't dig into this on my own, I wouldn't have known about R&D credits last year at all because no one else was even telling me about them or offering them up as suggestions. Other things like this, etc.

It's hard to find someone that isn't just "another bland CPA" on the street corner. Knowing which questions to ask is also a tough deal because what you dont know, you dont know.

.
 

Thimar Laouichi

New Contributor
Read Millionaire Fastlane
Mar 7, 2019
5
4
16
I don’t believe everyone gets raped, and I don’t see worrying about or trying to prevent the theft of a fifth of your income as “complaining”.
Absolutely, it's just my point of view ")
 

Mark Mueller

New Contributor
May 24, 2018
7
6
13
Your benefits look really low. If you're a w-2, hit that 401k hard. Avoid the income and lower your tax rate. And have a side business. Depreciation is your friend. If you don't have a side business, go buy a house and rent it out. Now you have one.
 

Jaden Jones

Igloo Builder
FASTLANE INSIDER
Speedway Pass
Aug 22, 2018
230
275
171
Canada
I live in the most taxed jurisdiction in North America with a 53% marginal income tax rate when you combine federal and provincial taxes.
This!!! In canada you would pay twice that, not as much in my province as his. But I make about the same as you and I pay about 47%
 

Schwarz

Half Man ; Half Goat
FASTLANE INSIDER
Feb 16, 2019
73
77
123
Flanders | Belgium
You should come to Belgium. They love ripping you off here. If the 30-50% income tax rate has not convinced you, then I am sure the 21% VAT or 34% corporate tax rate will do the job.
 

CrimsonNight

New Contributor
Dec 4, 2017
4
8
22
SWEDEN
It is like 50% here in Sweden if you earn around 487 600 SEK (52 446 USD). Add an additional 20% on the amount over that.

Of course, there are several ways to avoid this large amount of taxes but most people still pay that much.
 

tapikaipsihremos

New Contributor
Mar 9, 2019
4
1
16
I make 134,000 a year on paper.

My take home every other week is 4,124.00
My actual income before taxes is 5,108.00

I get over 900 dollars taken out every two weeks! That’s a F*cking fifth of my income.

AND, I always OWE money to the irs at the end of the year.

I have two small children and I am married.

Edit: I was a bit off, Exact numbers:

If you are in America watch this documentary
America : Freedom to Fascism
View: https://www.youtube.com/watch?v=O6ayb02bwp0


It is against the american constitution to be taxed on your labour.The goverment can only tax business transactions. Don't quote me on that last part. Watch the full documentary. You won't regret it.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post thread…

Search the Forum



New Topics

FASTLANE INSIDERS

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom