Take home income for doctors

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redPastel said:
What's the real income for physicians? (After office overheads, insurance, and taxes) More specifically for hospitalist making $170k a year.
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If you're a hospitalist, you're almost certainly an hospital employee (though there are some groups contracting in) either way, you aren't paying overhead and your insurance will likely be part of a benefits package. Most hospitalists make much more than 170k (though some markets can get away paying doctors this little) and your take home will be whatever you make less applicable federal, state, and local income taxes. To be safe just assume you give the government about half of every dollar you make. So your 170k hospitalist will take home 85k spending. It doesn't go as far as you think but I suppose it's still better then most.
 
jdh71 said:
If you're a hospitalist, you're almost certainly an hospital employee (though there are some groups contracting in) either way, you aren't paying overhead and your insurance will likely be part of a benefits package. Most hospitalists make much more than 170k (though some markets can get away paying doctors this little) and your take home will be whatever you make less applicable federal, state, and local income taxes. To be safe just assume you give the government about half of every dollar you make. So your 170k hospitalist will take home 85k spending. It doesn't go as far as you think but I suppose it's still better then most.
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Half is an extreme overestimate. Even w/ 0 deductions, the top income bracket will pay ~30% in taxes total.
 
jdh71 said:
Wishful thinking.
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depends on your state and your income, NYC will pay more than 50%, a state w/o income tax will pay far less w/ deductions depending on whether you're an employee or an independent contractor paying your own benefits.


Though remember, teh top tax bracket only pays that 39.5% (I think that's what it went up to), on all income over a certain limit. It does average out though if your'e a world-class surgeon making 800K/year, then yeah, that will be about your average taxes just to the fed

Do remember that there are social securtiy taxes and the alternate minimum tax (forget the name) that adds an extra $10-12,000 in taxes no matter waht (employed, I think you're only responsible for half of that).

Just make sure you get a good tax guy, and don't go for someone who just specializes in physicians.
 
Rendar5 said:
depends on your state and your income, NYC will pay more than 50%, a state w/o income tax will pay far less w/ deductions depending on whether you're an employee or an independent contractor paying your own benefits.


Though remember, teh top tax bracket only pays that 39.5% (I think that's what it went up to), on all income over a certain limit. It does average out though if your'e a world-class surgeon making 800K/year, then yeah, that will be about your average taxes just to the fed

Do remember that there are social securtiy taxes and the alternate minimum tax (forget the name) that adds an extra $10-12,000 in taxes no matter waht (employed, I think you're only responsible for half of that).

Just make sure you get a good tax guy, and don't go for someone who just specializes in physicians.
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Like I said . . .

To be safe just assume you give the government about half of every dollar you make.
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If it doesn't add up to half - bonus - the problem is . . . there isn't much the government hates more than for a pile of money to be somewhere that it doesn't have a significant piece of. Take that together with less government revenues from an anemic economy, and an increasing class of people living and surviving off of government money, and expect to be subsidizing all of it as long as you have a job and make a salary that is more than most people.

You feel rich? :laugh:

Try telling the parasite class you are not.

Anyway, I won't move to state that has high income taxes and I'm looking very favorably at those without an income tax . . . for now . . .
 
How much is taken away for tax in Cali or NY making ~ 200k?
 
Much, much, much, much higher than a median income

It is so unbelievably high, that literally your only problem in life becomes taxes

That is when you have reached the pinnacle of class and first world problems

When taxes are the only thing you can bitch about on the internet, you know you're making ****ing bank
 
haha. what Texas doesn't take from your income, they will suck out from your property taxes!
 
Beargryllz said:
Much, much, much, much higher than a median income

It is so unbelievably high, that literally your only problem in life becomes taxes

That is when you have reached the pinnacle of class and first world problems

When taxes are the only thing you can bitch about on the internet, you know you're making ****ing bank
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Except you wasted 10 years to get there to make anything. Most of the comparable professional world is 5-7 years ahead of us with retirement savings, buying a house, etc.

Compound interest requires time to work. If you run the numbers it becomes a lot of work to make up that loss from a financial standpoint.

Oh and I didn't even mention student loans :laugh::laugh:
 
link2swim06 said:
Except you wasted 10 years to get there to make anything. Most of the comparable professional world is 5-7 years ahead of us with retirement savings, buying a house, etc.

Compound interest requires time to work. If you run the numbers it becomes a lot of work to make up that loss from a financial standpoint.

Oh and I didn't even mention student loans :laugh::laugh:
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When I got my masters, I applied to 20 jobs and found a job paying $10 / hour. I'm not losing much while in medical school. lol what the hell was going to be my retirement savings and house saving from a job that pays $6-7 / hour after taxes?

:laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh:
 
So then how did Romney pay only 14% in taxes while making 14 million?
 
kautionwirez said:
So then how did Romney pay only 14% in taxes while making 14 million?
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I'm not sure if you're serious or trolling.....

I find it baffling how ignorant some people can be regarding finances.
 
kautionwirez said:
So then how did Romney pay only 14% in taxes while making 14 million?
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Capital gains.

It's how the rich ****ers lol all the way to the bank while people like us pick up the tab.

Wages which really are not income but are considered income as far as the men with guns who will put you in jail for not paying the extortion are concerned get taxes at a much higher rate.
 
My "impressive" income on paper/my contract is actually not so impressive once 3373737372 kinds of taxes and surcharges get taken out.

And yeah, Romney and the rest of the super rich people luck out for the most part.
 
jdh71 said:
Capital gains.

It's how the rich ****ers lol all the way to the bank while people like us pick up the tab.

Wages which really are not income but are considered income as far as the men with guns who will put you in jail for not paying the extortion are concerned get taxes at a much higher rate.
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It's not "the rich" and isn't really those who make capital gains who are laughing their way to the bank- it is those who work in the financial sector especially private equity and hedge funds. The carried interest loophole should be ended immediately- this loophole allows many in the financial sector to have their income taxed at the capital gains rate instead of the ordinary rate.

It is fine to get the lower capital gains rate if you are risking your own money, but not if you are risking other people's $
 
rodmichael82 said:
When I got my masters, I applied to 20 jobs and found a job paying $10 / hour. I'm not losing much while in medical school. lol what the hell was going to be my retirement savings and house saving from a job that pays $6-7 / hour after taxes?

:laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh::laugh:
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I have dozens of friends who went into engineering who started out at 50-80K at 22 years old. Several of them are near 100K now (I am 25).

One of my other friends just finished up school to become an anesthesiology assistant last year and is starting at over 120K (at 24 years old).

PAs make 80K+ and with no gaps you are done with PA school at 24 years old.

Without doing a combined college/medical school path the quickest we can become attending is 29-33 years old. That's nearly a decade behind.


Sure there are plenty of fields were you make $10/hr with a college diploma but I'd claim it is an idiotic move to even major in such a field where you make less than the manager at McDonalds.
 
If you have a private practice, is that also taxed as a business?
 
acceptmeplease said:
If you have a private practice, is that also taxed as a business?
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there are several different forms of business taxation. But the bottomline is that doctor's wages and/or profits flowing through the private practice are going to be taxed as ordinary income 99% of the time - eventually. taxes can be deferred for a while if the practice owns expensive equipment/real estate and can take advantage of depreciation strategies.
 
www.paycheckcity.com

Net is about 65% of gross, unless you have to do things like pay for your own malpractice insurance or pay for your own benefits, which is highly unlikely unless you're running your own practice.
 
michaelrack said:
It's not "the rich" and isn't really those who make capital gains who are laughing their way to the bank- it is those who work in the financial sector especially private equity and hedge funds. The carried interest loophole should be ended immediately- this loophole allows many in the financial sector to have their income taxed at the capital gains rate instead of the ordinary rate.

It is fine to get the lower capital gains rate if you are risking your own money, but not if you are risking other people's $
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Tell that to the Republicans in Congress.... They will tell you: 'NO NEW TAXES'...
 
circulus vitios said:
www.paycheckcity.com

Net is about 65% of gross, unless you have to do things like pay for your own malpractice insurance or pay for your own benefits, which is highly unlikely unless you're running your own practice.
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Wow... I am shocked that with a salary of 210k in FL, someone will only net about 4k bi-weekly after 10% 401k and health insurance deductions... I thought it would be over 5k bi-weekly... I guess my wife will still have work even if become a physician...
 
Don't forget that physician salaries are expected to decline in the coming decades...
 
Beargryllz said:
Much, much, much, much higher than a median income

It is so unbelievably high, that literally your only problem in life becomes taxes

That is when you have reached the pinnacle of class and first world problems

When taxes are the only thing you can bitch about on the internet, you know you're making ****ing bank
Click to expand...

Ah, to be young and naive again . . .
 
Beargryllz said:
Much, much, much, much higher than a median income

It is so unbelievably high, that literally your only problem in life becomes taxes

That is when you have reached the pinnacle of class and first world problems

When taxes are the only thing you can bitch about on the internet, you know you're making ****ing bank
Click to expand...

The naiviete is so unbelievably high, that literally your only problem in life becomes hypothetical situations

That is when you have reached the pinnacle of ignorance and premed problems

When hypothetical incomes and hypothetical taxes are the only thing you can bitch about on the internet, you know you haven't worked a real job or paid a significant amount of tax ever
 
Temperature101 said:
Wow... I am shocked that with a salary of 210k in FL, someone will only net about 4k bi-weekly after 10% 401k and health insurance deductions... I thought it would be over 5k bi-weekly... I guess my wife will still have work even if become a physician...
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Paycheckcity's figures might be a little off because they don't account for things like standard deductions, benefits, retirement savings, etc., but 65 ± 5% is accurate, from what I've been told.
 
Arkangeloid said:
Don't forget that physician salaries are expected to decline in the coming decades...
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No one knows for certain. I certainly don't think physician salaries will decline more than 10% at any rate. If anything, income should rise because the amount of "free" care delivered should be reduced with increased coverage. Remember, something like 10-15% of all care delivered becomes charity because patients can't pay.
 
notbobtrustme said:
Half is an extreme overestimate. Even w/ 0 deductions, the top income bracket will pay ~30% in taxes total.
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notbobtrustme said:
Run the numbers on a few tax websites, and with 0 dependents, 0 deductions, the total tax federal tax burden on 250k is 50k.

http://www.hrblock.com/free-tax-tips-calculators/
http://apps.opm.gov/tax_calc/withhold_calc/
http://www.calcxml.com/calculators/federal-income-tax-calculator

You can easily cut that number in half with mortgage interest deduction, IRA contributions, student loan interest deductions, dependents and such.
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notbobtrustme said:
That only counts federal taxes to be fair. Add in state, local, sales, and property taxes and the figure will probably hit 40%.
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State and local taxes is where they get you. Particularly if you live in blue states like CA, NY, NJ, etc. My gf makes just under $100k in NYC and gets to keep slightly under 60% of it.

Better get acquainted with the flyover states if you want to keep more than half of what you make...
 
Slack3r said:
State and local taxes is where they get you. Particularly if you live in blue states like CA, NY, NJ, etc. My gf makes just under $100k in NYC and gets to keep slightly under 60% of it.

Better get acquainted with the flyover states if you want to keep more than half of what you make...
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Yeah, I'm in your gf's boat---I make a few hundred k in NYC and what I actually get to keep is nowhere near what I make. Thankfully, my other half is in a flyover state so if he ends up staying there for residency, my take home should be significantly better. Or, so I hope.
 
I love how people delude themselves about no income tax states. In Texas you're paying a 8.25% sales tax and then sky high property taxes. I doubt you're saving much money unless you're a renter. But even then the cost of property tax on the on the property trickles down to rent prices.
 
ijn said:
I love how people delude themselves about no income tax states. In Texas you're paying a 8.25% sales tax and then sky high property taxes. I doubt you're saving much money unless you're a renter. But even then the cost of property tax on the on the property trickles down to rent prices.
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sales tax in NYC is 8.375%
 
fancymylotus said:
I actually get to keep is nowhere near what I make.
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If the practice was under an LLC and it was handled as such financially, could you declare less personal income and pay the corporate tax while still being a majority stakeholder - and having control? Unless of course the tax rate was higher for the LLC.
 
CDI said:
If the practice was under an LLC and it was handled as such financially, could you declare less personal income and pay the corporate tax while still being a majority stakeholder - and having control? Unless of course the tax rate was higher for the LLC.
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Its possible, but its really Dad that gets slammed with ridiculous taxes and so if there was any way around stuff, its him that tries to take advantage.

And I believe we're a holding corp, or group, or something. One for the practices, one for his real estate.

This stuff makes my head hurt
 
Temperature101 said:
Wow... I am shocked that with a salary of 210k in FL, someone will only net about 4k bi-weekly after 10% 401k and health insurance deductions... I thought it would be over 5k bi-weekly... I guess my wife will still have work even if become a physician...
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Haha. 8K/month after taxes and retirement funds is great actually. I know that one needs to factor in student loans and delayed gratification, but my family and I are surviving decently on 2500/month...and my wife doesn't need to work. She's a queen in her own little kingdom.
 
fancymylotus said:
Its possible, but its really Dad that gets slammed with ridiculous taxes and so if there was any way around stuff, its him that tries to take advantage.

And I believe we're a holding corp, or group, or something. One for the practices, one for his real estate.

This stuff makes my head hurt
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Haha, I was asking cause we do the exact same thing. Individual offices under their own LLC, and the overseeing billing/management under its own LLC. Real estate own LLC and different ones for different states.

I know some of the physicians defer their income for tax reasons.
 
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