Author Topic: Take home salary questions  (Read 5199 times)

jeep69

  • 5 O'Clock Shadow
  • *
  • Posts: 8
Take home salary questions
« on: November 20, 2016, 11:07:58 PM »
In short I wanted to know how much the take home amount for these salaries are and if these numbers are correct  from the online calculator I used urging them in.  I am in Nebraska.

Salary of 60K per year would be 41,800 and 72K per year would be 49,000.


I ask because I am in a professional program with mutiple  hundreds of thousands in debt and Absolutly hate it.  I  was thinking about switching programs but those salaries listed are the entering salaries. Offered for new grads in the field I would want to go into, I'm questioning if I could even live off those numbers with my debt.

braje

  • 5 O'Clock Shadow
  • *
  • Posts: 69
Re: Take home salary questions
« Reply #1 on: November 21, 2016, 12:40:12 AM »
Not enough info. How is your W-4 Filed out? Any deduction eg 401K health insurance?

marielle

  • Pencil Stache
  • ****
  • Posts: 860
  • Age: 27
  • Location: South Carolina
Re: Take home salary questions
« Reply #2 on: November 21, 2016, 07:55:41 AM »
For reference, I work in SC and claimed 2 on my W-4. I have no deductions, no 401k or anything.

At 55k salary per year, my paychecks add to $40790. I will likely get a tax refund as well. I also just got a raise to 60k, and if this rate is the same that should be $44500 after taxes. Your numbers seem low, so they might be if you claim 0 on your W-4 with no other deductions.

seattlecyclone

  • Walrus Stache
  • *******
  • Posts: 5624
  • Age: 36
  • Location: Seattle, WA
    • My blog
Re: Take home salary questions
« Reply #3 on: November 21, 2016, 02:33:54 PM »
It's really impossible to give an exact answer to that question without a lot more information. Just as an example, the federal payroll tax will take 7.65% off the top, but it doesn't apply to amounts you have taken out of your paycheck for health insurance premiums or a few other things. How expensive will these things be? For federal taxes, are you married? Do you have kids? Will you be contributing to pre-tax retirement accounts? Do you own a house? What's the interest rate on your student loans? Lots of other things could affect your taxes there. And each state has its own list of things that affect your taxation.

Regardless of what you decide about switching programs, you might want to look into income-based repayment on your debt. It's a program that reduces your required payments to a level determined "affordable" based on your income, and after some number of years (20? 25?) any remaining debt is forgiven. I wouldn't want to have that much debt hanging over my head for so long, but it's a sunk cost at this point. Consider whether finishing your current degree program and going into that profession would bring you more happiness than switching paths at this point.

etselec

  • Stubble
  • **
  • Posts: 168
Re: Take home salary questions
« Reply #4 on: November 22, 2016, 03:29:30 PM »
Use http://www.paycheckcity.com/calculator/salary/ just make sure you have the right number of exemptions/deductions entered, and all health insurance and other payroll deductions accounted for.

Proud Foot

  • Handlebar Stache
  • *****
  • Posts: 1110
Re: Take home salary questions
« Reply #5 on: November 23, 2016, 08:55:43 AM »
In short I wanted to know how much the take home amount for these salaries are and if these numbers are correct  from the online calculator I used urging them in.  I am in Nebraska.

Salary of 60K per year would be 41,800 and 72K per year would be 49,000.


I ask because I am in a professional program with mutiple  hundreds of thousands in debt and Absolutly hate it.  I  was thinking about switching programs but those salaries listed are the entering salaries. Offered for new grads in the field I would want to go into, I'm questioning if I could even live off those numbers with my debt.

So that would be $3,483 - $4,083 for take home each month. Using www.paycheckcity.com I get close to those numbers using single/0 allowances.  Is this correct? But we still would need more information.

By Professional program do you mean graduate school? (MBA, Med School, etc).   
How close are you to being finished with the program?
How much longer would it take and additional cost for switching programs?
Do you have an idea of what your monthly payments would be on your loans?
Once you're done with your program could you get a job somewhere with PSLF?

And like seattlecyclone said, you definitely should look into IBR for your debt once you have to start making payments.

jeep69

  • 5 O'Clock Shadow
  • *
  • Posts: 8
Re: Take home salary questions
« Reply #6 on: November 24, 2016, 12:56:01 AM »
proudfoot

I am halfway thru dental school, I finished a M.S. from the same school.  I have two years left. thought about switching to PT school but I am getting more and more unsure about what to do and I honestly have no clue what will make me happy at this point, my program is an absolute bear and my life is slightly short of nightmarish at this point.  I have thought about switching for a while now but have not pulled the trigger.

 I am at a private school so the PT program  is 3x what it is at a public school which is absurd (around 33K semester), however the cost of PT education where I am originally from is around 12K a semester as its a public school.  I do not want to move back to my original state, I have thought about applying for residence in my current state and applying for the public PT school here as tuition is much lower than the private school I go to.

I really don't know if switching would automatically make me happier or not, I am not 100% sure and I guess that's why I have hesitated.  I got  into my current situation because I had a "grass is greener " view and became infatuated with the wrong things and feel like I have been chasing the wrong things.  I can probably stomach it out to finish my degree but I am unsure if I would want to get up and go to work everyday.  apparently school is nothing like actually being in the profession which I don't understand and is hard to wrap my head around.  I honestly don't know if I have it in me to start completely over again with something new either.  I have spent the last four years basically working around the clock studying, having to miss my family out of state, caused a long term relationship to end,  have basically had to teach myself everything at my dental school (no joke/ there is minimal actual teaching that occurs and its mindboggling)/ health has taken a dive due to very high stress (see areas above).

I am honestly in a rough spot and have been for a few years and I just don't know how to get out of it or really what to do and its really starting to wear on me.

I don't know what PSLF is.
no kids, not married, I rent an apartment and pay waay to much for internet :) [/quote]
« Last Edit: November 24, 2016, 01:01:48 AM by jeep69 »

Mikila

  • Stubble
  • **
  • Posts: 232
Re: Take home salary questions
« Reply #7 on: November 24, 2016, 09:06:41 AM »



I ask because I am in a professional program with mutiple  hundreds of thousands in debt and Absolutly hate it. 
Even if you are in a field you "love," odds are you will want to quit at some point.  With "multiple hundreds of thousands in debt," the sooner you get to paying that off, the sooner your money will be your own. 

In which field do you have an MS?  What jobs does it qualify you for, with what salaries?  Why not choose a job using that?

In your position (from what I can infer), I would expedite entering the workforce.

I would ABSOLUTELY NOT change majors/programs and keep piling on the student loans.

I understand that you want to find a career you love, but I think you have to practical first.  Also, even if you love a field, that doesn't guarantee happiness in that career.  You are on an early retirement board : )

patchyfacialhair

  • Handlebar Stache
  • *****
  • Posts: 1113
  • Age: 31
Re: Take home salary questions
« Reply #8 on: November 24, 2016, 10:22:46 AM »

MDM

  • Senior Mustachian
  • ********
  • Posts: 10468
Re: Take home salary questions
« Reply #9 on: November 24, 2016, 11:12:31 AM »
http://us.icalculator.info/

Looks slick but has some basic errors.  E.g., for 2016 MFJ w/ 2 kids it uses $28,600 for the standard deduction plus personal exemptions.  Actual number is $12,600 + 4*$4,050 = $28,800.

Also doesn't include saver's, earned income, or child tax credits.

patchyfacialhair

  • Handlebar Stache
  • *****
  • Posts: 1113
  • Age: 31
Re: Take home salary questions
« Reply #10 on: November 24, 2016, 01:34:18 PM »
http://us.icalculator.info/

Looks slick but has some basic errors.  E.g., for 2016 MFJ w/ 2 kids it uses $28,600 for the standard deduction plus personal exemptions.  Actual number is $12,600 + 4*$4,050 = $28,800.

Also doesn't include saver's, earned income, or child tax credits.

Fair enough. But for OP's purposes they are debating a 12K pay increase. A couple clicks and they can confirm (roughly) their after tax numbers to determine if the job change is worth it.

But good catch and a fantastic eye for detail, nonetheless.

Edited to add: I'm not affiliated with that website...I just stumbled upon it one day.
« Last Edit: November 24, 2016, 01:36:55 PM by patchyfacialhair »

MDM

  • Senior Mustachian
  • ********
  • Posts: 10468
Re: Take home salary questions
« Reply #11 on: November 24, 2016, 03:24:26 PM »
But for OP's purposes they are debating a 12K pay increase. A couple clicks and they can confirm (roughly) their after tax numbers to determine if the job change is worth it.
Agreed, this is an "uninteresting" section of the tax code.  In other words, none of those credits, other phaseouts, AMT, etc., come into play.  The marginal rate on the $12K increase in the OP was estimated at 40%: taxes of $4800 on that $12K.

That seems about right, assuming a constant 6.84% Nebraska tax rate.  The 6.84% comes from State Taxes: Nebraska | Bankrate.com, and will be incorrect at lower incomes but seems appropriate for the salary range in question here.  Given that, OP's marginal rates would be

patchyfacialhair

  • Handlebar Stache
  • *****
  • Posts: 1113
  • Age: 31
Re: Take home salary questions
« Reply #12 on: November 25, 2016, 08:22:03 PM »
MDM with the exact detail orientation as always. OP, I suggest you pay attention. MDM has tons to offer when looking at precise numbers. Their "time to FI" formula has a spot front and center in my personal finance spreadsheet.

Proud Foot

  • Handlebar Stache
  • *****
  • Posts: 1110
Re: Take home salary questions
« Reply #13 on: November 28, 2016, 08:22:14 AM »
proudfoot

...I have two years left...

 ...I have thought about applying for residence in my current state and applying for the public PT school here as tuition is much lower than the private school I go to.

I really don't know if switching would automatically make me happier or not, I am not 100% sure and I guess that's why I have hesitated.  I got  into my current situation because I had a "grass is greener " view and became infatuated with the wrong things and feel like I have been chasing the wrong things.  I can probably stomach it out to finish my degree but I am unsure if I would want to get up and go to work everyday.  apparently school is nothing like actually being in the profession which I don't understand and is hard to wrap my head around.  I honestly don't know if I have it in me to start completely over again with something new either.  I have spent the last four years basically working around the clock studying, having to miss my family out of state, caused a long term relationship to end, have basically had to teach myself everything at my dental school (no joke/ there is minimal actual teaching that occurs and its mindboggling)/ health has taken a dive due to very high stress (see areas above).

I don't know what PSLF is.

With two years left how hard would it be to apply for residency and then transfer to a public school to finish your last two years of dental school?  With your comment about having to basically teach yourself I would strongly encourage this.  Not having to basically teach yourself will go a long way with your stress as well. 

I don't know anything about dental school or dentistry but your comment about school being nothing like being in the profession caught my eye.  Have you taken time to shadow dentists to see what a typical day looks like?  This might help you decide whether you would actually enjoy being a dentist and if it would be worth sticking out the rest of school. 

For PSLF: This is Public Student Loan Forgiveness.  It is a program you can get in which will forgive the balance of your loans after 120 payments and working for a qualifying organization: government or non-profit.  It doesn't really help you with your immediate cash flow but if combined with IBR it will be a big benefit at the forgiveness date.

jeep69

  • 5 O'Clock Shadow
  • *
  • Posts: 8
Re: Take home salary questions
« Reply #14 on: December 09, 2016, 09:40:14 PM »
So sorry I have let this slip---have been in finals aka nightmare.

I definatly do not want to move back to my home state no mater what, my family is there but I really like where I am living now and I feel there are more opportunities as it is a bigger city.

Would the wise move be to apply for residency and maybe that would open up my options for whatever I decide???  I have been living here since 2013 and have had some part time jobs here.