Thank for your detailed reply.
Yes they signed us on late last year. My area is saturated , but people are still getting jobs and residency. There are a some that I know of that are having trouble finding jobs too. I've been with my company a few years too. I am definitely worried about the future and pay going down with the surplus tho. But I am happy to have a job and start paying off loans.
Anyway, I said state, but I meant all together (federal + state) So you answered my question.
"In NYS, your tax rate will be $973 plus 6.85% on of the excess >$40,000. So, for argument's sake, (93000-40000) = 53000(*.0685)=(3630.50+973)= $4603.50 for state taxes. A far cry from 40% though. If the state alone took 40% of your gross, you'd be broke by the time Uncle Sam and all the welfare babies got their cut. (How do you know this, where can find this information? besides the IRS website, which isnt all that helpful to me)
You didn't ask about federal but it seems like a good idea to combine the two so on $93,000 income; 21.24% of it will be taxed, (.2124*93000)=$19,749.
Total tax; (19749 + 4604[rounded for ease of calc]) = $24353 on your $93000, which puts the total taxed at about 26%."
I thought the tax bracket was 28% for federal, plus state taxes would bring it to about 35-40% withheld.
Ah, but just because the bracket you're in is 28% does not mean you're taxed at 28%! Your tax is actually at ~21% because you're not that high on the scaled system.
I should've cited my sources, sorry about that.
1.
http://www.tax.ny.gov/pdf/2008/inc/nys_tax_rate_150_201.pdf [State Tax Rates]
2.
http://www.irs.gov/pub/irs-pdf/i1040tt.pdf [Federal rate on your $]
Taken from 2;
If your income is right at 93000, your tax will be 19756. 19756/93000 * 100 =/= 28%. More like 21.2%.
Let me explain something in more detail that the average Joe doesn't understand about taxes.
If your $ (line 43, taxable income) is greater than $82,400 but less than $171,850, then your tax rate is a flat $16,781.25
plus 28% of any net amount over $82,400. That does
not I repeat NOT mean your tax rate IS 28%. No, no, no.
Your tax rate is determined via:
Flat $16,781.25 (@ 93k) + .28(93000-82400) =
16781.25 + 2968 = 19749.25
19749.25 / 93000 = 0.21235 * 100 = 21.24%~.
That is
right off Schedule X, from the IRS themselves.
Now... there is all the welfare babies/old people $$ you need to throw down too but that's much more difficult to calculate and in reality is a lot less of the pie than state + federal income tax. You're getting socked in the shorts. I'd definitely see a tax professional once you're working to see what kind of deductions they can hook you up with. The ave. person throws away
tons of their money because they just assume the gov't will do what's best for them when in reality a simple trip to a tax professional will save them $$$$$$$$$$$$ esp. in the long term.
"Tax income bracket" is oft-misused by people who don't do their own taxes or seek to understand the process. The IRS makes their tables and formulae intimidating on purpose. As a pharmacist, big numbers, scary percentages and quotients shouldn't bother you much though. Don't get ****ed over by Uncle Sam (And I love Uncle Sam, but he can be a bastard with $).
. That's crazy. Too think, they take this much money from the working class and this state is still in so much debt...dumbfounding.
