Hello my friends, welcome back to another episode of Freedom Formula for Physician’s Podcast, the podcast dedicated to helping doctors like you slash your debt, slash your taxes, and live a liberated lifestyle.
I am excited for the start of the year here, as we are well on our way into 2018. I would like to ask a favor-could you take 5 minutes or less to rate and review the podcast on iTunes? I’d like to give some listener love to a few people who have recently received the podcast:
Todd, KS (paraphrased)-I came across this podcast in early 2017, and it has been a wonderful addition to my morning routine and commute. Dave has great guests on and gets right to their personal stories. These stories include financial struggles and pearls of wisdom-an enjoyable listen. Highly recommended!
Dr. Mike WM-An excellent podcast for physician’s-young and old. As doctors, we get zero business education in medical school, and Dave gives practical advice to help us on our financial journeys. Highly recommended!
There have been some BIG changes with taxes, and I’ve had a huge focus on addressing these changes between 2017 and 2018! And as a friendly reminder, you can text LESSTAXES to 44222, and that will give you all kinds of information with the tables I’ve been going over and possibly help you to apply for your specific situation.
In this podcast you will:
- Learn how itemizing is a much more difficult barrier for residents and fellows to get over
- Discover the difference of tax savings between being single and being married
If you think you may be paying more taxes than the numbers I’ve crunched, I’d love to hear from you and look over those numbers with you to see if I might be off on your calculations or if you might off on your calculations. Also remember, you can e-mail me at dave@doctorfreedompodcast.com.
| Married Couple, No Kids, No Mortgage, State Income Tax | 2018 Tax Bracket, Single | ||||||||||
| % | Start | End | base amt tax | ||||||||
| Total Income in 2017 | $50,000 | Total Income in 2018 | $50,000 | 10% | $- | $9,525.00 | $952.50 | ||||
| Retirement Plan Contributions | $(2,000) | Retirement Plan Contributions | $(2,000) | 12% | $9,526.00 | $38,700.00 | $4,453.38 | ||||
| 22% | $38,701.00 | $82,500.00 | $14,089.16 | ||||||||
| Adjusted Gross Income | $48,000 | Adjusted Gross Income | $48,000 | 24% | $82,501.00 | $157,500.00 | $32,088.92 | ||||
| 32% | $157,501.00 | $200,000.00 | $45,688.60 | ||||||||
| Personal Exemptions | $(4,050) | Personal Exemptions | $- | 35% | $200,001.00 | $500,000.00 | $150,688.25 | ||||
| 37% | $500,001.00 | Infinity | |||||||||
| Standard Deduction | $(6,350) | Standard Deduction | $(12,000) | ||||||||
| Property Taxes | $- | 2017 Tax Bracket, Single | |||||||||
| % | Start | End | base amt tax | ||||||||
| Mortgage Interest | $- | 10% | $- | $9,325.00 | $932.50 | ||||||
| 15% | $9,326.00 | $37,950.00 | $5,226.10 | ||||||||
| Taxable Income | $37,600 | Taxable Income | $36,000 | 25% | $37,951.00 | $91,900.00 | $18,713.35 | ||||
| n/a | 28% | $91,901.00 | $191,650.00 | $46,643.07 | |||||||
| Tax | $5,174 | Tax | $4,129 | 33% | $191,651.00 | $416,700.00 | $120,909.24 | ||||
| 35% | $416,701.00 | $418,400.00 | $121,503.89 | ||||||||
| Total Savings (Loss) | $1,044 | 39.60% | $418,401.00 | Infinity | |||||||
| Itemized Deductions in 2017 | $(6,350) | Itemized Deductions in 2018 | $(16,350) | MN State Income Tax Rates, Single | |||||||
| Standard Deduction in 2017 | $(12,700) | Standard Deduction in 2018 | $(24,000) | % | Start | End | base amt tax | ||||
| 5.35% | $- | $25,890.00 | $1,385.12 | ||||||||
| Property Taxes and State Inc Taxes Capped at 10k/ year | 7.05% | $25,981.00 | $85,060.00 | $5,550.18 | |||||||
| State Income Taxes | $(2,937) | 6.12% | 7.85% | $85,061.00 | $160,020.00 | $11,434.47 | |||||
| 9.85% | $160,021.00 | Infinity | |||||||||
| Would need charitable deductions/mortgage | $3,413 | ||||||||||
| Married Residents, No Kids, No Mortgage, No State Income Tax | 2018 Tax Bracket, Married Filing Jointly | ||||||||||
| % | Start | End | base amt tax | ||||||||
| Total Income in 2017 | $100,000 | Total Income in 2018 | $100,000 | 10% | $- | $19,050.00 | $1,905.00 | ||||
| Retirement Plan Contributions | $(4,000) | Retirement Plan Contributions | $(4,000) | 12% | $19,051.00 | $77,400.00 | $8,906.88 | ||||
| 22% | $77,401.00 | $165,000.00 | $28,178.66 | ||||||||
| Adjusted Gross Income | $96,000 | Adjusted Gross Income | $96,000 | 24% | $165,001.00 | $315,000.00 | $64,178.42 | ||||
| 32% | $315,001.00 | $400,000.00 | $91,378.10 | ||||||||
| Personal Exemptions | $(8,100) | Personal Exemptions | $- | 35% | $400,001.00 | $600,000.00 | $161,377.75 | ||||
| 37% | $600,001.00 | Infinity | |||||||||
| Standard Deduction | $(12,700) | Standard Deduction | $(24,000) | ||||||||
| Property Taxes | $- | 2017 Tax Bracket, Married Filing Jointly | |||||||||
| State Income Taxes | $- | % | Start | End | base amt tax | ||||||
| Mortgage Interest | $- | 10% | $- | $18,650.00 | $1,865.00 | ||||||
| 15% | $18,651.00 | $75,900.00 | $10,452.35 | ||||||||
| Taxable Income | $75,200 | Taxable Income | $72,000 | 25% | $75,901.00 | $153,100.00 | $29,752.10 | ||||
| 28% | $153,101.00 | $233,350.00 | $52,221.82 | ||||||||
| Tax | $10,347 | Tax | $8,259 | 33% | $233,351.00 | $416,700.00 | $112,726.99 | ||||
| 35% | $416,701.00 | $470,700.00 | $131,626.64 | ||||||||
| Total Savings (Loss) | $2,088 | 39.60% | $470,701.00 | Infinity | |||||||
| MN State Income Tax Rates, Married Filing Jointly | |||||||||||
| % | Start | End | base amt tax | ||||||||
| 5.35% | $- | $37,850.00 | $2,024.98 | ||||||||
| 7.05% | $37,851.00 | $150,380.00 | $9,958.27 | ||||||||
| State Income Taxes | $(6,124) | 6.38% | 7.85% | $150,381.00 | $266,700.00 | $19,089.31 | |||||
| 9.85% | $266,701.00 | Infinity | |||||||||
| Would need charitable deductions/mortgage | $6,576 | ||||||||||
