VitaminK

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Ok so this may be a stupid question but how much is actually taken out of your paycheck for taxes? I'm trying to make my budget right now but don't know how much money I'll actually be bringing home. I'll be making about 40,000 on paper so how do I figure out how much I'll lose to taxes and how much I'll actually make per month? Then when I go to do taxes after my first year of residency will I most likely be getting back money? Honestly I've never had a job before so I've never dealt with any of this but I want to be prepared for next year. Thanks!
 

thebadguy1999

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im 14 and i know this Q im sure its one third of yoy paycheck so if u make like 50 grand they take a little over 12grand i think
 

GeneGoddess

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It depends on what you list for your withholdings. DH and I make, together, about that much. We each have "Single 1" on our W4, and we get about $3300/mo gross, have about $320 in taxes taken out, for a net monthly income of about $3000/mo. However, we file as "married filing joint", so our tax bracket is the lowest. $40K for a single person MAY be a higher tax bracket and you might want to take out more (single, 2). The more you take out, the more you pay in taxes throughout the year (and usually, the higher the refund you get). I try to PAY on Apr 15 every year (I don't like giving the gov't a tax free loan), but if you owe more than $1000 in taxes, you can be fined.
 

TucsonDDS

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Last year my wife and I filed Married Filing Jointly with an adjusted gross income of 97307. We paid 7228 to federal and 1798 state for Arizona. We also paid probably around 4 or 5K in SSI but I don't have the exact figure.
 

GeneGoddess

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amk25a said:
For 2005, Social Security is 6.2% of your paycheck (up to $90k) and Medicare is 1.45% (no limit). Then factor in the federal, state, and any local income taxes according to the tax bracket you're projected to be in and number of withholdings (based on your AGI, not the amount you were actually paid).

http://www.ssa.gov/pubs/10003.html

Oh yeah...forgot about that! Grad students and MD/PhDs are FICA exempt.
 

GeneGoddess

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Grad student stipends are FICA exempt: we don't pay SS, etc. Only income tax. It sounds good, but we are also considered part time and are ineligible for retirement contributions (like 401K and 403B - only IRAs are ok) and in Texas, we are only eligibile for HALF health benefits. That's because we work 80hrs/wk, but are considered "part time" employees. That's thanks to an idiot from Lubbock (long story).

So, in the long run, the things we DO pay for outweigh the FICA exempt status.
 

DrB

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VitaminK said:
Honestly I've never had a job before so I've never dealt with any of this but I want to be prepared for next year. !

I can't believe you have never had a job and you are going to be a resident next year! What the hell did you do before you got into med school? :eek:

I'd love to know what in the world your Adcoms were looking at when the opened your file. I am normally a passive guy... but this post got me red hot.

- +pissed+
 

GeneGoddess

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DrB said:
I can't believe you have never had a job and you are going to be a resident next year! What the hell did you do before you got into med school? :eek:

I'd love to know what in the world your Adcoms were looking at when the opened your file. I am normally a passive guy... but this post got me red hot.

- +pissed+
Lots of people have never had a "real job" before starting residency. I don't think I've ever had a "real job". I didn't work in HS, but I was ultra-involved in extracurriculars (including Band, which means practices 2d/wk in June/July and all day, every day in August until school began) and was a hospital volunteer (8-12hrs/wk) year round. Part of my college tuition was paid via scholarships (mostly from the hospital where I volunteed). I also went to a state school (I couldn't afford private). In college, I was taking an average of 18hrs/semester and was volunteering with an ambulance service. I'm a bit altruistic and would rather volunteer as an EMT than get paid. In the summers, I did "summer research internships" that were 10wks, full time. I got paid, but it was basically room/board. Taxes weren't taken out, though I had to file income taxes in April. I went directly from college to an MD/PhD program. I get "paid" a stipend (much like those summer research internships). So, I've never held a "real job" either.

I don't think that hold a "real job" should be a pre-qualification for acceptance into medical school or residency.