<p>After going over the CSS with DS3, he said that no wonder that we (the Nation) have a debt problem because people like me pay so little. I have used standard deductions for the past two years. We did get a nice break due to the educational credits for DS1/DS2. But, I must admit that paying 3% federal tax (relative to box 1 in W-2) is kind of low. What do you think?</p>
<p>You pay 3% federal tax?</p>
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Count your blessings and don’t look a gift horse in the mouth. :)</p>
<p>I am taking a hell of a loss on NYS property tax on a rental. </p>
<p>I am still paying at least 17k more than I am getting.</p>
<p>I’d like to only pay 3%… however I wouldn’t want to lower our income in order to have that happen. BTW I’m not looking forward to filling out FSFA. I haven’t looked at it yet but I’m assuming it’s not going to be any fun.</p>
<p>Well you have a point, but most people won’t be able to see it. I have a very low income, and in recent years have paid almost no federal income tax, and I think one year with very low W-2 income and some refundable tax credits I actually got more back from the Feds than was withheld, so my federal tax rate was negative. In each of those years I have paid state income tax, which seems to start at a very low rate but also at a very low level of income.</p>
<p>So yes, as has been widely reported, there are a large number of relatively low income families (not destitute) that pay no federal income tax. Maybe it would be better if tax kicked in at lower levels, even if at a low rate.</p>
<p>One of my mantras is, “That which costs nothing has no value” which applies to just about everything. Zero copay? Go to the doctor whether you need it or not. 100% fullride scholarship? Party all day and all night! Utilities included? Crank up the heat and open the windows! Free food at the buffet? Keep filling your plate until you can’t eat any more and throw the rest into the garbage. Pay nothing towards federal government services? (Fill in the blanks_________)</p>
<p>You are a lucky person to be able to deduct two kids costs. I have been told not to expect to deduct a penny.</p>
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<p>35 and going up</p>
<p>At least you are on the other side of 47% who pay some federal income taxes.</p>