takehome pay

[Muse600]

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what percentage do optometrists take home after taxes?

I'm trying to help an OD student calculate how quickly she can pay off her student loans, and based on this thread:

http://forums.studentdoctor.net/threads/starting-optometrist-salary.360324/

I'm guessing the pre-tax income is $70-$100k...so I'm curious to know roughly what percentage you take home

I also understand the state you're in, your withholdings, 401k contributions, medical insurance, and flex spending accounts will have an impact

 

[20DOC20]

It depends. You can't just take it as a percentage because the business deductions vary from person to person. It varies from business type also.

If they're employed, they can take off non-compensated employee expenses and itemized deductions.

If self-employed, they start with the Schedule C. Take out the business deductions like you would with any business. Tack on an extra 4-6% for the self-employment tax. From there you move to the itemized deductions.

And after all that you have the taxable income. Taxes are a priority debt. They take priority over student loan debt.

Just have her pay the usual monthly loan payment for the first year, do the taxes at the end. Find out what the disposable income is and make a big balloon payment on the principle after taxes filed. If she makes similar income the following year, then you can use the first year as a template for the second.

That would be a safe way to go because you MUST make sure you pay taxes first.

 

[20DOC20]

Really, this is a question for a CPA. Just keep your receipts and invoices and a good CPA can sort them out.

 

[Singuy]

I'm not sure the type of pay the OD student is expecting. Corporation salary or leasing? If corporation salary, then you are talking about the federal tax bracket, state income tax(if any), and 7.6% in social security and medicare, the rest will depends on the insurance picked and 401k. Expect the take home to be around 70k if the pay is 100k. If the student is leasing, then the above poster is correct, there are so many deductions to consider, also the pay varies from year to year so the take home is pretty random. There are ways around the self-employment taxes(as in paying self-employment tax all the way to 117k) when you have your own corporation/business, so at the end, it's all a wash compared to corporation salary.