taxes on your salary in US

[ClinPsycMasters]

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Once in a while I come across some relatively high paying job offers in US (I live in Canada). Anybody can give me an idea on how much taxes one would pay on a job with an annual salary anywhere between 40,000 to 80,000?

I was once chatting with a lawyer in LA who told me that he made 150,000 but takes home only 40,000 after overhead, taxes, etc. I don't know if that's true but that would suck big time. Why else would anyone choose to become a lawyer? //kidding

 

[deleted176373]

Once in a while I come across some relatively high paying job offers in US (I live in Canada). Anybody can give me an idea on how much taxes one would pay on a job with an annual salary anywhere between 40,000 to 80,000?

I was once chatting with a lawyer in LA who told me that he made 150,000 but takes home only 40,000 after overhead, taxes, etc. I don't know if that's true but that would suck big time. Why else would anyone choose to become a lawyer? //kidding

http://www.maxi-pedia.com/interactive+federal+tax+calculator

That's just federal income taxes... and yes, in California, it's not surprising to see 50% of every dollar you earn go to some form of taxation.

150k salary = 23% federal taxes, 10% state taxes, 10% sales tax, property tax 1% of 300,000 or $3000, that's $68 thousand in taxes already without adding social security, medicare, unemployment taxes or any other taxes like car registration fees, etc.

Mark

http://retirementliving.com/RLstate1.html

CALIFORNIA
Sales Taxes
State Sales Tax: 8.25% (food and prescription drugs exempt. Tax varies according to locality. Can be as high as 10.50%)
Gasoline Tax: * 46.6 cents/gallon
Diesel Fuel Tax: * 46.6 cents/gallon
Cigarette Tax: 37 cents/pack of 20 plus an additional surcharge of 50 cents per pack, bringing the total to 87 cents.

Personal Income Taxes
Tax Rate Range: Low - 1.25%; High - 10.55%. For 2010 the state has enacted a 0.25 percentage point increase in each of the state's income tax brackets. A tax credit for dependents was reduced from $309 to $98. For information on taxes for military personnel, click here.
Income Brackets: ** Lowest - $7,168; Highest - $1,000,000
Number of Brackets: 6
Tax Credits:Single - $99; Married - $198; Dependents - $309; 65 years of age or older - $99
Standard Deduction: Single - $3,637; Married filing jointly - $7,274
Medical/Dental Deduction: Same as Federal taxes
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security and Railroad Retirement benefits are exempt. There is a 2.5% tax on early distributions and qualified pensions. All private, local, state and federal pensions are fully taxed.
Retired Military Pay: Follows federal tax rules. Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation:VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
Property is assessed at 100% of full cash value. The maximum amount of tax on real estate is limited to 1% of the full cash value. Under the homestead program, the first $7,000 of the full value of a homeowner's dwelling is exempt. The Franchise Tax Board's Homeowner Assistance program, which provided property tax relief to persons who were blind, disabled, or at least 62 years old, and met certain minimum annual income thresholds, has been halted. The state budgets approved for the 2008/2009 and 2009/2010 fiscal years deleted funding for this Homeowner and Renter Assistance Program that once provided cash reimbursement of a portion of the property taxes that residents paid on their home. For more information, call the Franchise Tax Board at 1-800-852-5711, or visit www.ftb.ca.gov/individuals/hra/index.shtml. The State Controller's Property Tax Postponement program, which allowed persons who are blind, disabled, or at least 62 years old, and meet certain minimum annual income thresholds, to postpone their property taxes. However, effective February 20, 2009, the state budget eliminated the Property Tax Postponement Program. For more information call 1-800-962-5661 or 916-327-5587, or visit http://www.sco.ca.gov/col/taxinfo/ptp/index.shtml. For information on property tax exemptions, click here.
Inheritance and Estate Taxes
There is no inheritance tax. However, there is a limited California estate tax related to federal estate tax collection.

For further information, visit the California Franchise Tax Board or the California State Board of Equalization.
* Does not include 1 cent local option.
** For joint returns, the taxes are twice the tax imposed on half the income.

 

[ClinPsycMasters]

Thanks Mark.

That's awful. Why would anyone bother undergoing so many years of training and have big loans to pay (like the lawyer told me) only to take home half of your salary? I should just go back to school, get a bachelor's in comp sci. Why go for PhD in psych? Much more responsibility and not much more pay.

 

[orangele]

Thanks Mark.

That's awful. Why would anyone bother undergoing so many years of training and have big loans to pay (like the lawyer told me) only to take home half of your salary? I should just go back to school, get a bachelor's in comp sci. Why go for PhD in psych? Much more responsibility and not much more pay.

Yes a question many a Pre-med or Pre-anything involving sacrifice and hard-work may/should be asking themselves.