Your 2024 Tax Journey

Sample Client • Let's make taxes fun (yes, really!)

Total Income

$455K

Great year!

Total Tax

$119K

26.3% paid

Effective Rate

27.1%

Solid efficiency

Marginal Rate

35%

Top bracket

How Your Tax Dollar Breaks Down

Put It In Perspective

Your tax bill of $119,705 could buy...

10,509

Big Mac Combo Meals

at $11.39 per meal

🍔

That's enough burgers to eat 3 meals a day for 3,503 days (over 9 years)!

Your Effective Rate

30.1%

On total income of $398,127

vs. Average Taxpayer

The average effective tax rate for your income bracket is 28-32%

You're here

Year-over-Year

Your tax liability increased by $12,450 from 2023, primarily due to higher investment income.

Detailed Breakdown

Ordinary Income Tax$109,719 (91.7%)

Long-Term Gains Tax$6,418 (5.4%)

Additional Medicare Tax$1,906 (1.6%)

Net Investment Income Tax$1,662 (1.4%)

Climbing the Tax Bracket Ladder

Highest Bracket

35%

$154,402 taxed at this rate

Total Tax from Brackets

$109,720

Effective rate: 27.6%

10%

Basic

$0 - $11,600

$11,600 taxed

Tax paid: $1,160

1.1% of your total tax bill

12%

Moderate

$11,601 - $47,150

$35,550 taxed

Tax paid: $4,266

3.9% of your total tax bill

22%

Growing

$47,151 - $100,525

$53,375 taxed

Tax paid: $11,743

10.7% of your total tax bill

24%

Substantial

$100,526 - $191,950

$91,425 taxed

Tax paid: $21,942

20.0% of your total tax bill

32%

High Earner

$191,951 - $243,725

$51,775 taxed

Tax paid: $16,568

15.1% of your total tax bill

35%

Your Top

$243,726 - $609,350

$154,402 taxed

Tax paid: $54,041

49.3% of your total tax bill

How Your Brackets Compare Internationally

Tax bracket systems vary significantly across countries. Here's how the US system compares to Canada and Switzerland at your income level:

United States

Your Current System

Your Top Bracket

35%

Bracket Range

$243,726 - $609,350

System Type

7 federal brackets (10%-37%)

Canada

Federal + Provincial

Your Top Bracket

33%

Bracket Range

CAD $246,752+

System Type

5 federal brackets (15%-33%)

Switzerland

Federal + Cantonal

Your Top Bracket

11.5%

Bracket Range

CHF 895,900+

System Type

Federal max 11.5% + canton

Bracket Width

How brackets are structured

USA

Wide brackets

$365k range in 35% bracket

Canada

Unlimited top

33% starts at CAD $247k

Switzerland

Lower federal

Canton taxes vary widely

What This Means

At your income level

Canada: +$4,509

Higher provincial taxes

Switzerland: -$32,914

Much lower overall rates

Switzerland's lower federal rates make it significantly more tax-friendly for high earners

Room to Grow!

You have $211,223 of breathing room in your current 35% bracket before hitting the 37% rate at $609,350. That's plenty of space for strategic income moves in 2025! Consider maximizing retirement contributions or timing income recognition to stay in this bracket.

Your Investment Wins

💎 Capital Gains

Short-Term($983)

Long-Term$43,657

Net Gain$42,674

💸 Dividends

Qualified$115

Tax Rate15%

Tax Savingsvs 35% rate

Smart Money Moves

Your long-term capital gains are taxed at just 15% instead of your ordinary income rate of 35%. That's a 20% tax savings on $42,789 of investment income—worth $8,558 in tax savings! Keep holding those long-term winners.

The NIIT Watch

Income vs NIIT Threshold$255,516 over

Threshold: $200,000Your MAGI: $455,516

Your MAGI$455,516

NIIT Threshold$200,000

Amount Over$255,516

Net Investment Income$43,734

NIIT Rate3.8%

Total NIIT$1,662

Optimization Opportunity

You're $255,516 over the NIIT threshold. Strategic tax planning could help reduce this 3.8% surcharge on investment income. Let's chat about ways to optimize this!

Medicare Premium Watch

Income vs IRMAA Threshold$295,127 over

Threshold: $103,000Your Income: $398,127

What is IRMAA? Income-Related Monthly Adjustment Amount is an extra charge added to your Medicare Part B premium if your income exceeds certain thresholds.

Standard Premium

Monthly$174.70

Annual$2,096.40

Base Medicare Part B premium everyone pays

IRMAA Surcharge

Monthly+$384.30

Annual+$4,611.60

Additional charge due to income over $103,000

Total Premium

Monthly$559.00

Annual Total$6,708.00

Your total Medicare Part B cost for 2024

Income Bracket Breakdown

Under $103,000$0 surcharge

$103,001 - $129,000+$69.90/mo

$129,001 - $161,000+$174.70/mo

$161,001 - $193,000+$279.50/mo

$193,001 - $500,000 ← You're here+$384.30/mo

$500,001++$419.30/mo

Potential Savings

If your income was under the $103,000 threshold:

Annual Savings$4,611.60

Planning Tip: IRMAA is based on your Modified Adjusted Gross Income (MAGI) from 2 years prior. Strategic income planning can help manage these costs.

Medicare Cost Planning

You're paying an additional $4,611.60 annually in IRMAA surcharges. Since IRMAA is based on income from 2 years ago, strategic tax planning and income timing can help optimize these costs. Consider Roth conversions, HSA contributions, and other strategies to manage your MAGI.

Your 2025 Action Plan

0 of 5 completed (0%)

Quick Wins for Next Year:

HSA Contributions

Your return shows no HSA contributions. If eligible, max this out for tax-free healthcare savings!

Estimated Tax Payments

Safe harbor for 2025: $131,675 (110% of 2024 tax). Set up quarterly payments to avoid surprises.

Review Withholding

You had additional taxes due. Let's adjust your withholding to spread payments throughout the year.

Maximize Pre-Tax Benefits

Double-check you're maxing out 401(k), FSA, and any other employer benefits.

NY PTE Tax Election

Pass-through entity? Consider the PTE tax election to exceed the $10K SALT cap.

Did You Know?

The gap between your marginal rate (35%) and effective rate (27.1%) shows you're doing a great job utilizing deductions and preferential tax treatments. That 7.9 percentage point difference represents smart tax planning in action!

The Fine Print

Filing Info

StatusSingle

AGI$455,516

Taxable Income$440,916

Deductions

Standard Deduction$14,600

Credits$0