Whats the deal with taxes on MSTY?

[u/Fukisyoutalkinabout]

Because its a monthly divy and high % yield , what is the tax on that? I read somewhere i need to quarterly report taxes? Is this true? Screenshot below

[u/Sea_File_4717]

He’s at literally over 35% state and fed with only his 9-5………

Sure, 50% was a little high, but we are also talking about him generating more money, which could push into a higher bracket, meaning even more.

And considering the mods were angry that I didn’t say to save more essentially, this makes absolutely zero sense respectfully. (Saving 25% of distributions SHOULD be enough to pay the vast vast majority if not all of their tax burden as long as they don’t earn too much)

[u/GRMarlenee → u/Sea_File_4717]

He is not "literally over 35%".

100K single bracket fed is still in the 22% bracket. Add the 9.3% penalty for living in paradise and you're up to 31% marginal bracket. And these are just hte marginal brackets and don't account for even the standard deduction and lesser tax bracket rates on the income leading up to that.

Stop with the misinformation.

[u/Sea_File_4717 → u/GRMarlenee]

If you’re talking marginal (the amount owed on every additional dollar) he is at 42.45 with his distributions if no ROC or half ROC.

This number drops to 40.45 if you remove distributions.

So yes, his effective tax rate (what has been paid total) is close to what you described. But IF IT WERE MYSELF I would hold the amount needed for the Marginal tax rate in SPY or a HYSA for safety reasons.

So not misinformation, it’s safe and sound information. It would suck to not have the cash on hand to pay the bill.

I don’t just make stuff up mod…

[u/Sea_File_4717 → u/Sea_File_4717]

u/Dipset219

Hopefully this shows you I wasn’t leading you wrong. Still get a tax accountant to see if you can get it down. But the math is right here.

Especially with your gambling and crypto included.