Hi Everyone, I’m about to sign a contract for a new position and am trying to determine what my new paycheck might look like and would really appreciate to have someone check my numbers for me. I'm a financial 9th grader and pretty new to MMM--have been lurking for a year or so--but am ready to be more actively involved soon... Thanks for any help with the below question!
My new salary of $135,000 is a 10.6% increase over my present salary of $122,000.
Here’s my math so far…
My estimated Federal Taxes look like $30,800 per year, as follows:
$135,000 - $91,000 = $44,000 X .28 = $12,320 ($12,300)
$12,300 + $18,500 = $30,800 per year in Federal Taxes (roughly 22.8% of total earnings ($135,000))
Federal Tax Amount = $30,800
Federal Tax Bracket: 28%
Federal Tax as a Percentage of Income: 22.8%
My estimated CA tax is: $7,800 (used an online ca.gov calculator)
This brings my combined taxes to $38,600:
Federal taxes $30,800 plus state taxes $7,800 = $38,600
$135,000 - $38,600 = $96,400 annually or $8,000 per month
Defined Contribution Plan would be roughly $8,775 per year or $750 per month
$8,000 – $750 (pension program deduction) = $7,250 per month
Given that this is only a 10.6% salary increase, I don’t see how this number could be right…. I would have thought that the figure should be more like $6,400…
Am I missing something big?
My only thought is that the tax deferral of the $18,000 per year in the 403B program (which is new for the new position) might account for the difference? Could this somehow account for another $850 per month in my take home pay?! Doesn't seem plausible, then then, that's why I'm asking...
Thanks much for any help/clarification/etc. This forum is fantastic!
