Monthly Take Home Salary

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TheWowEffect said:
I am going to be a PGY1 resident in Michigan with an annual of $41016. What will be my monthly take home salary considering I am married, wife not working and no kids? Thanx in advance...
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Michigan's flat tax 3.9% .. Fica tax of 7.7%, then federal tax.. filing jointly

$2440/month, but that's with no deductions
 
you should make about 1100-1150 a month
 
radonc said:
you should make about 1100-1150 a month
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wtf? 68% tax rate? what are you smoking?
 
~$2200 +/-100 per month. (they might charge you something for your wifes health insurance)
 
How about Columbus, Ohio with PGY-1 $39,100. No wife, no kids, no anything... how much can I take home after taxes? Does that mean I still have to pay income tax on April 15 or is that already included?
 
I was told to get my gross biweekly pay to divide the stipend by 26.1 I'm not sure how taxes fit in, maybe there are no taxes at all in MN, I don't know. That could help give you a general number, especially when you want to ball park between what two math wiz's are telling you.

Oh yeah, Dick Cheney is part of my axis of evil.

TheWowEffect said:
LOL...dunno what hes smoking but thanx, Ross434, for ur input....
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EvilNewbie said:
How about Columbus, Ohio with PGY-1 $39,100. No wife, no kids, no anything... how much can I take home after taxes? Does that mean I still have to pay income tax on April 15 or is that already included?
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Everybody has to pay income tax. Uncle Sam does not like it if you try and skip out on it.

Your federal, state and local taxes, SSI, etc. (ie, "income taxes") will be deducted from each paycheck along with health and dental insurance (you will have to pay a nominal sum) and any other additional deductions - like 401 K - you ask to have deducted. Sometime before you start working you will be asked to fill out a W4 form on which you will state your number of deductions and any extra monies (if any) you wish to have deducted from each paycheck. See http://www.irs.gov and follow the publications link if you wish to see a copy of the form.

Before April 15 you will do or have your taxes done and hopefully enough was taken out of each paycheck to cover the annual taxes. Typically your first year you won't have any trouble and can expect a refund. I didn't have to pay and extra tax until I went over $50,000/year because of some moonlighting I did before restrictions came along. Most years I broke about even, or either paid or got a refund of some nominal amount.

I don't know the tax rate for Ohio, local rates for Columbus or if you have any inane "employment tax" (if you work in Hershey you have to pay something like an additional $500 per year...even though I don't live in Hershey), but you'll probably take home around $1200 +/- every other week.
 
Anxiolytic said:
I was told to get my gross biweekly pay to divide the stipend by 26.1 I'm not sure how taxes fit in, maybe there are no taxes at all in MN, I don't know. That could help give you a general number, especially when you want to ball park between what two math wiz's are telling you.

Oh yeah, Dick Cheney is part of my axis of evil.
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Hmmm...what about Federal taxes? Surely people in MN have to pay those! If not, move on over...I'm coming in! 😀

Anyway, sure if you divide your pay by 26 pay periods it will give you your GROSS biweekly amount, but since most people want to know their NET I'm not sure how that will help much. Its not any harder to figure the taxes from the Gross than it is from the net.
 
i love how we´re so ignorant about taxes and the such. haha its because alot of us have never had real jobs!!!
 
EvilNewbie said:
How about Columbus, Ohio with PGY-1 $39,100. No wife, no kids, no anything... how much can I take home after taxes? Does that mean I still have to pay income tax on April 15 or is that already included?
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ohio tax: $1294
fica tax: $3010
federal tax: $5306 (this includes standard deduction)

monthly income: $2450/month


For the OP.. I forgot to include your standard deduction 😛 you'll probably end up with more take home than i thought - so, to the OP - more like $2550/month

This doesnt include health insurance or life insurance or dental or whatever other retirement plans etc that you opt to have taken out on top of taxes.

Here's a gleeful little fact for you 😛 you'll never be paying this small amount of taxes again. Lets say you're an attending on ohio, making $200,000 a year

ohio tax: $11,056
fica tax: $5775
federal tax: $53,920

Yikes! (note: im not including any deductions here, because that would be friggin complicated - in reality, you'll pay maybe 12% less due to mortgages, retirement plans, etc)
 
Kimberli Cox said:
Hmmm...what about Federal taxes? Surely people in MN have to pay those! If not, move on over...I'm coming in! 😀

Anyway, sure if you divide your pay by 26 pay periods it will give you your GROSS biweekly amount, but since most people want to know their NET I'm not sure how that will help much. Its not any harder to figure the taxes from the Gross than it is from the net.
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Believe me, MN has taxes...lots and lots of them....

Go to TX if you want no taxes (and no state funding for education, public assistance, etc....)
 
OldPsychDoc said:
Believe me, MN has taxes...lots and lots of them....

Go to TX if you want no taxes (and no state funding for education, public assistance, etc....)
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Must be the Swedish influence.

Thanks for the suggestion, but I've lived in Texas. My heart is in Vegas since my SO is taking a job there upon completion of his fellowship. No state taxes and In-N-Out Burger. What more could you ask for? :laugh:
 
OldPsychDoc said:
Go to TX if you want no taxes (and no state funding for education, public assistance, etc....)
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Who needs funding for education and public assistance (etc) when you've got the 10 Commandments on the capitol grounds? Ye have little faith 😉
 
OldPsychDoc said:
Go to TX if you want no taxes (and no state funding for education, public assistance, etc....)
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They have some of the best public school funding (check into some of the in-state tuition costs for TX public med schools) and all states have public assistance. They have a huge education fund that is backed by bonds.
 
DrMom said:
They have some of the best public school funding (check into some of the in-state tuition costs for TX public med schools) and all states have public assistance. They have a huge education fund that is backed by bonds.
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Furthermore, they collect their pound of flesh through a relatively high sales tax, much like Florida. This is done to extract revenue from all the seasonal inhabitants (who wouldn't be eligible to pay state income tax, if it existed).
 
TheWowEffect said:
I am going to be a PGY1 resident in Michigan with an annual of $41016. What will be my monthly take home salary considering I am married, wife not working and no kids? Thanx in advance...
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😴 😱 😕 😎 😀 🙁
 
Try using Turbo Tax's tax estimator (a bit old) that takes into acount fed tax, state tax, deductables, etc. Doesn't take Social Security/Medicare taxes though, but those are a flat rate of 7.65% of taxable income (anyone know how they determine how much income can be taxed for SS and Medicare?) so you can estimate that yourself.

Turbo Tax Estimator

For 2002, I estimated you would pay $3,430 fed inc tax, $1,479 in MI inc tax, and $3,149 max for SS/Medi taxes (7.65% of your total gross income, which it won't be), leaving you with $34,288 net income yearly and $2,857/mo and $1,429 biweekly. Seems a bit high, but that's what it showed:

Description Federal Michigan
Adjusted gross income $ 41,016 n/a
Itemized or standard deductions $ 8,050 n/a
Exemption deduction $ 6,100 n/a
Taxable income $ 26,866 n/a
Total tax $ 3,430 $ 1,479
Total withholding and payments $ 0 $ 0
Refund or balance due $ 3,430 $ 1,479


This takes into account only $14,150 in basic deductions that you would automatically get. Dunno how accurate this is though!
 
1. Buy a home: Interest and taxes are tax deductible. If you rent, you
just throw the money away.

2. Contribute to an IRA: $3K off the top reduces your taxable income.

3. Donate to charity: Don't throw away anything of value. Anything that
can be used that you don't need or want shouuld be donated, especially
clothing. The IRS allows reasonable value to be assigned to these
items. Keep donation receipts.

4. Itemize your deductions: Any expenses related to your job are
deductible. Textbooks, clothing, medical equipment and even a portion
of your PDA and computer if used for work purposes. Software is
deductible as well. A home office is also deductible. Save receipts and
be honest!

5. Get married: If your wife doesn't work or makes less than
you, then the added deduction is of benefit. If she makes more than
you then ask her for lots of gifts 😀

6. Procreate: Kids are double bonuses! You get the deduction and you get
a child tax credit for each one which also comes right off the top and
lowers your taxable income.

7. Consider paying student loan interest: This is also tax deductible, but
this may eat into your budget if you have large loans which can be
deferred or placed in forebearance.

I hope this helps!
 
JAMMAN said:
1. Buy a home: Interest and taxes are tax deductible. If you rent, you
just throw the money away.

2. Contribute to an IRA: $3K off the top reduces your taxable income.

3. Donate to charity: Don't throw away anything of value. Anything that
can be used that you don't need or want shouuld be donated, especially
clothing. The IRS allows reasonable value to be assigned to these
items. Keep donation receipts.

4. Itemize your deductions: Any expenses related to your job are
deductible. Textbooks, clothing, medical equipment and even a portion
of your PDA and computer if used for work purposes. Software is
deductible as well. A home office is also deductible. Save receipts and
be honest!

5. Get married: If your wife doesn't work or makes less than
you, then the added deduction is of benefit. If she makes more than
you then ask her for lots of gifts 😀

6. Procreate: Kids are double bonuses! You get the deduction and you get
a child tax credit for each one which also comes right off the top and
lowers your taxable income.

7. Consider paying student loan interest: This is also tax deductible, but
this may eat into your budget if you have large loans which can be
deferred or placed in forebearance.

I hope this helps!
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My strategy - dont buy anything except a home. Who needs a wife, kids, charities, or IRA. They all take away more money than they save you in taxes. :laugh:
 
Actually # 2 is incorrect the money you put into an IRA is AFTER you pay taxes then the advantage lies in the fact that you wont have to pay capital gains when you pull it out.

I think what you meant by # 2 is a 401(k) or 403(b) I believe next year you can contribute 14K and they yr after 15K where it will plateau for a while. this 14 or 15K reduces the taxes you have to pay up front but has no effect on capital gains / income tax in the future. Actually when you pull the money out in the future you have to pay taxes on it at that time (I think as regular income but I am not sure).

The kids are a good idea but they are expensive in themselves.

For #7 this student loan interest in no longer deductible after you make a certain amount of money (about 130K for a married couple).

Hope this info helps.
 
TheWowEffect said:
I am going to be a PGY1 resident in Michigan with an annual of $41016. What will be my monthly take home salary considering I am married, wife not working and no kids? Thanx in advance...
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I take home around $2600 a month, no kids, not married.

If you matched at DMC, St. John's, Henry Ford, you will be taking home less because there is a 1% - 3% City of Detroit tax you have to pay as well (rate is higher if you are a non-resident of Detroit working in the city).
 
Ross434 said:
My strategy - dont buy anything except a home. Who needs a wife, kids, charities, or IRA. They all take away more money than they save you in taxes. :laugh:
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This strategy works with a residents income, but with a physician salary, pretax investments that lower your taxable income offer significant advantages.

As far as charities go. If you throw away something you could of donated, then you are throwing away deductions.
 
EctopicFetus said:
Actually # 2 is incorrect the money you put into an IRA is AFTER you pay taxes then the advantage lies in the fact that you wont have to pay capital gains when you pull it out.
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Actually, you are incorrect. You are probably refering to a Roth IRA or other variant of the Traditional IRA.

With a Traditional IRA, you can deposit up to $3K in before tax dollars. There are a few conditions, but almost every resident will meet the conditions.
 
DrMom said:
They have some of the best public school funding (check into some of the in-state tuition costs for TX public med schools) and all states have public assistance. They have a huge education fund that is backed by bonds.
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The public school funding isnt that great-- its just that all the med schools in TX have an agreement with the govt to only charge $6550 for tuition.

In terms of research/infrastructure/unrestricted grant dollars from the state, TX gets jack because all that money is going towards buying more Hummers.
 
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