Broker Check

What are You Paying in Taxes?

| October 20, 2015
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We all probably think “income tax” when we consider our individual tax burden. However, you pay a lot more in taxes than just your income tax. Consider the following:

  • Federal Income Tax
  • State Income Tax
  • Social Security Tax
  • Medicare Tax
  • Self-Employment Tax
  • Alternative Minimum Tax
  • Real Estate / Property Tax
  • Electricity Tax
  • Natural Gas Tax
  • Cable Tax
  • Federal Landline Phone Tax
  • State Landline Phone Tax
  • Federal Cell Phone Tax
  • State Cell Phone Tax
  • Hotel Accommodations Tax
  • Cigarette Tax
  • Sales / Use Tax
  • Other Personal Property Taxes
  • Automobile Property / Excise Tax

Understanding the other more than 20 taxes that you most likely pay will help you think differently about a number of things, including your buying habits, to where you choose to live and work, to the kind of car you drive. The American Institute of CPAs has developed a free calculator called Total Tax Insights (http://www.totaltaxinsights.org/Calculator ) that you can easily plug in some basic information on yourself and get an approximate figure and breakdown complete with a pie chart on your tax payments. The answer may surprise you but the information should be helpful in your tax and financial planning decisions. I found it useful to change some variables after my first report to see the approximate changes and possible reductions I could make to my tax bill.

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