USUHS monthly take-home pay question

[Sean Lee]

I have a 3.6 cGPA, 3.3 sGPA, and 33 MCAT. My primary has been verified, and USUHS is one of my top choices. I have a cousin who served for 8 years in the Army.

Based on 2014 data, here's what I know of USUHS pay.

-You get approx. $2,100 tax exempt allowance (housing and food) per month
-You get paid $2,900 a month base pay, subject to normal federal and state tax rates
-At a 20% tax rate, you take home approx. $2,300 a month of base pay
-Your combined monthly take-home pay is around $4,400, am I correct?

In the civilian sector, to have a take-home monthly pay of $4,400, you'll need to make around $70,000 a year gross.

This is obscenely generous.

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[Sean Lee]

And to clarify, the BAH is without dependents.

Is there some sort of catch in the pay? As in some secret tax?

Taking home $4,400 a month for 4 years while getting an MD degree sounds absolutely incredible.

 

[colbgw02]

LOL

 

[Mace1370]

I graduated from USUHS in 2013. My monthly take home pay was roughly $4000. That is after I took out deductions for taxes and with single BAH. I was paying state tax as well as federal (I didn't actually need to pay state tax; I got the money back, but that's another story).

While I felt like the salary was generous, the cost of living in Bethesda is quite ridiculous. Expect to pay around $1500/month for a 1 bedroom apartment.

Edit: Yes, there is a catch. They own your sole for about 11 years minimum, haha

 

[Sean Lee]

I graduated from USUHS in 2013. My monthly take home pay was roughly $4000. That is after I took out deductions for taxes and with single BAH. I was paying state tax as well as federal (I didn't actually need to pay state tax; I got the money back, but that's another story).

While I felt like the salary was generous, the cost of living in Bethesda is quite ridiculous. Expect to pay around $1500/month for a 1 bedroom apartment.

Edit: Yes, there is a catch. They own your sole for about 11 years minimum, haha

7 year active duty commitment and 6 years reserve after residency sound reasonable. And making over 100k during those years as a military officer is something I am more than willing to do. Besides, I'll still be younger than 45 after my active duty commitment. That still gives me 20+ years of work in the civilian sector with significantly higher pay.

 

[Sean Lee]

I graduated from USUHS in 2013. My monthly take home pay was roughly $4000. That is after I took out deductions for taxes and with single BAH. I was paying state tax as well as federal (I didn't actually need to pay state tax; I got the money back, but that's another story).

While I felt like the salary was generous, the cost of living in Bethesda is quite ridiculous. Expect to pay around $1500/month for a 1 bedroom apartment.

Edit: Yes, there is a catch. They own your sole for about 11 years minimum, haha

LOL

 

[Sean Lee]

LOL

?

 

[Mace1370]

7 year active duty commitment and 6 years reserve after residency sound reasonable. And making over 100k during those years as a military officer is something I am more than willing to do. Besides, I'll still be younger than 45 after my active duty commitment. That still gives me 20+ years of work in the civilian sector with significantly higher pay.

That's true, and that is exactly the mindset I had when I joined. Don't get me wrong, I do not regret my decision. Granted, I'm still in residency so haven't actually got to the "fun" part yet.

There are many other things you need to consider other than just how much money you make.

Are you single? I was when I joined. Now I'm married. Her best job prospects are in the DC area. So far we've stayed there. I doubt that will last forever.

Want to buy a house? Moving is stressful enough every 3-4 years. It might not even be financially worth it to only own a house for 3 years, so you are losing out on a lot of potential value there.

Bottom line - join because you want to serve. You will always have that no matter what. That's why I joined and why I don't regret my decision. The rest of everything else that will happen to you might, at the end of the day, be a net positive, negative, or a wash.

 

[Mace1370]

I should clarify -- commitment is for 7 years at USUHS, but you have a 4 year residency. I don't count medschool because that is a different beast entirely. USUHS does a great job of protecting you from baloney while you go through school (a fact that you don't really realize until you get out).

 

[Sean Lee]

That's true, and that is exactly the mindset I had when I joined. Don't get me wrong, I do not regret my decision. Granted, I'm still in residency so haven't actually got to the "fun" part yet.

There are many other things you need to consider other than just how much money you make.

Are you single? I was when I joined. Now I'm married. Her best job prospects are in the DC area. So far we've stayed there. I doubt that will last forever.

Want to buy a house? Moving is stressful enough every 3-4 years. It might not even be financially worth it to only own a house for 3 years, so you are losing out on a lot of potential value there.

Bottom line - join because you want to serve. You will always have that no matter what. That's why I joined and why I don't regret my decision. The rest of everything else that will happen to you might, at the end of the day, be a net positive, negative, or a wash.

You made some good points.

But my number one worry right now is my stats: 3.6 cGPA, 3.3 sGPA, and 33 MCAT. I hope that that's enough to get my foot in the door.

 

[Mace1370]

You made some good points.

But my number one worry right now is my stats: 3.6 cGPA, 3.3 sGPA, and 33 MCAT. I hope that that's enough to get my foot in the door.

Yes, assuming everything else is in order that will you you an interview at USUHS (and most non-ivy allopathics).

 

[honkfactory]

When I was a third year USUHS med student I told the chief resident of my OBGYN rotation how much I made (more than him) and he could not speak for thirty seconds. The look of resentment on his face was priceless.

That being said, it still is not an amazing starting salary for a talented individual. And it evens out over time compared to a civilian. And the non-monetary costs are very, very high.

Don't join the army/navy/air force unless you want to join, irrespective of medical career.

 

[Sean Lee]

When I was a third year USUHS med student I told the chief resident of my OBGYN rotation how much I made (more than him) and he could not speak for thirty seconds. The look of resentment on his face was priceless.

That being said, it still is not an amazing starting salary for a talented individual. And it evens out over time compared to a civilian. And the non-monetary costs are very, very high.

Don't join the army/navy/air force unless you want to join, irrespective of medical career.

Haha...

I do understand the non-monetary costs: no control where you get deployed, where you live, and limited control on which specialty you want. There is also military bureaucracy to deal with, and a slim possibility of injury or even death during deployment to a combat zone. There is also the pressure on your spouse and kids (if you have any) where they have to possibly give up their careers/schools and move with you - causing family/relationship issues that may end up in divorce.

But to me, wearing our nation's uniform and getting paid a very comfortable wage as a military physician is worth all the sacrifices.

 

[DD214_DOC]

It really has not been too bad so far, but I have certainly learned I'm more Hawkeye than Hooah

 

[tabascosauce]

Cringe

 

[Atlas Shrugged]

I'm only into my third week of BOLC and I'm finding this as well.

 

[Mace1370]

BOLC was not my favorite part of my military experience so far. Just keep your chin up and have a good attitude. Military medicine is a small place. I made a few good friendships at BOLC and have randomly seen them while rotating through hospitals.

 

[Atlas Shrugged]

I am, and I know a lot of our time in service will be nothing like this. It just seems so silly to me that they give us briefings on not raping anybody, yet don't teach us how to assemble gear properly. Knowing how to assemble an ACH would actually be useful, but they just issue it to us and leave it to the prior service guys to show us how to do it.

The field training exercise is starting soon, so hopefully that'll be a bit more useful/interesting.

 

[johnnyscans]

I am, and I know a lot of our time in service will be nothing like this. It just seems so silly to me that they give us briefings on not raping anybody, yet don't teach us how to assemble gear properly. Knowing how to assemble an ACH would actually be useful, but they just issue it to us and leave it to the prior service guys to show us how to do it.

The field training exercise is starting soon, so hopefully that'll be a bit more useful/interesting.

Those "don't rape people" briefs exist at all levels of government employment- it's not unique to the army.

 

[Sean Lee]

I have a question regarding taxes. If I attend USUHS and live in Bethesda, do I pay state taxes based on Maryland rate or Washington DC rate? The DC rate is quite a bit higher, and Bethesda is not a part of DC. Am I correct?

 

[Cooperd0g]

There is a federal law called the Soldiers and Sailors Relief Act. It covers lots of things. One is that just because the military moves you, you are not required to become a resident of state where you are stationed. Normally if a civilian moves to a new state they have 30 days +/- based on state rules to officially become a resident - get your new license, register to vote and register vehicles. If you are on active duty this is not required. If you come from a state like Texas, which has no income tax and cheap vehicle registration, then you should never change your official state of residency while you are in the military. If you are from a state like NY and subsequently get stationed in a place like Texas, then by all means switch to Texas. Also, if you every do switch you have to let the military pay folks know so they know to take out the appropriate state taxes. The default is whatever your state was when you entered active duty.

So you will be paying state income tax based on your official state of residence unless you switch to DC or MD on purpose.

 

[Sean Lee]

There is a federal law called the Soldiers and Sailors Relief Act. It covers lots of things. One is that just because the military moves you, you are not required to become a resident of state where you are stationed. Normally if a civilian moves to a new state they have 30 days +/- based on state rules to officially become a resident - get your new license, register to vote and register vehicles. If you are on active duty this is not required. If you come from a state like Texas, which has no income tax and cheap vehicle registration, then you should never change your official state of residency while you are in the military. If you are from a state like NY and subsequently get stationed in a place like Texas, then by all means switch to Texas. Also, if you every do switch you have to let the military pay folks know so they know to take out the appropriate state taxes. The default is whatever your state was when you entered active duty.

So you will be paying state income tax based on your official state of residence unless you switch to DC or MD on purpose.

Thanks for the info. Can I become a resident of MD just by renting an apartment and registering to vote in that state? Or do I have to change my driver's license as well? I don't plan on buying a car anytime soon, so I have no vehicles to register. Thanks again.

 

[colbgw02]

Thanks for the info. Can I become a resident of MD just by renting an apartment and registering to vote in that state? Or do I have to change my driver's license as well? I don't plan on buying a car anytime soon, so I have no vehicles to register. Thanks again.

Technically, if you are trying to declare Maryland as your state of residency, then you should get a new driver's license, just like any civilian would be required if he/she moved there. In addition, registering to vote or registering any cars you purchase there are overt acts that demonstrate your intent to establish Maryland as your domicile, as would having finance withhold taxes to the state. However, it's highly unlikely that anyone will ever question you about any discrepancy, particularly if you can produce an active duty military ID at the same time as your driver's license.

 

[Sean Lee]

Thanks for all the info. I just don't want any mix-up/confusion where I end up paying the state tax of multiple states. That would suck big time.

 

[pgg]

Non-military income (ie, moonlighting) is taxed in the state that it's earned in.

 

[j4pac]

Do NOT go military if you don't have the desire to be in the military. If you do it solely for the money, you will regret it. I have loved my stay...but that is because I love the military. If I resented the military lifestyle and all the bureaucratic BS, the money wouldn't be worth it.

If you go primary care you can be ahead doing USUHS...but if you go non-PCM, you will likely be behind (with less independence/flexibility).

 

[haujun]

It is nearly impossible to grasp and comprehend military until you pay back your commitment. USUHS/HPSP and residency/fellowship time is great with higher pay and protection from military but during your payback I have seen many USUHS colleagues regret their decision (7 year pay back...).

 

[Sean Lee]

I understand the potential and real sacrifices that a military medical career require. But after thoroughly researching the matter, I am still certain that this is the path I want to take. As a physician, my goal isn't to reach as far beyond 300k a year as humanly possible; I just want to practice medicine (without worrying about insurance and whether my patients can pay, hence another attractive quality of the military) and make a decent and comfortable living. To my knowledge, military attending physicians still make (after bonuses and special pays) over 100k a year (sometimes quite a bit higher, depending on specialty), and that is more than adequate for me.

 

[colbgw02]

I understand the potential and real sacrifices that a military medical career require. But after thoroughly researching the matter, I am still certain that this is the path I want to take. As a physician, my goal isn't to reach as far beyond 300k a year as humanly possible; I just want to practice medicine (without worrying about insurance and whether my patients can pay, hence another attractive quality of the military) and make a decent and comfortable living. To my knowledge, military attending physicians still make (after bonuses and special pays) over 100k a year (sometimes quite a bit higher, depending on specialty), and that is more than adequate for me.

Things pre-meds say.

It's great that you're going into this with your eyes seemingly open, but don't make the mistake of thinking that everyone's gripes about military medicine have all that much to do with the salary.

 

[haujun]

To HPSP/USUHSer:

When you are about to enter medical school your priorities are very different and I guess getting paid to attend the medical school is a sweet deal. But as you know there is no free lunch. For example Army pays $150 every month to paratroopers who jump out of a perfectly good plane. Why do you think military pay your medical school for?

During paid back you may not be able to practice medicine as you may be working as BN or BDE surgeon or other operational position etc... and suffer skill atrophy. Or as a clinician you have to deal with politics of MEDDAC that go against practicing a good medicine ...It is simply hard to predict a climate of military medicine about 10 plus years later after medical school/residency/fellowship etc and expect or hope that military will meet your future priorities and expectations whatever that may be.

I find that those military doctors who stay in operation without practicing medicine (and tell others how to practice medicine) are happy about their decision and stay in 20+ years.

Stay very flexible and pray.