Houston Analysts - SA and FT comp?
Will be working as an SA in Houston this summer and was wondering how much after taxes you guys made for your internship and for full time? I'm trying to figure out what I can afford in terms of housing, and I'm getting confused about how much is taken out for taxes and how much we get back. For example, if I make 20K this summer, how much will I pay for taxes? Do I get most of it back?
And then for FT, 10k sign on + 70K base + ~40K bonus? Is about 120K pre-tax correct? Of that, how much do you keep after taxes? I know bonuses are taxed at a higher rate, but a little confused about how this works. Thanks for the help!
Who are you working for in houston? Not sure how taxes are confusing you unless you're an international student. Housing shouldn't be a concern considering how cheap it is; you can find a nice place for 1k/month, which is definitely in your budget
Taxes in Houston are pretty straight forward as there is no city or state income tax. A quick and dirty estimate is to remove $10,000 from you salary for the standard deduction and personal exemption (this is actually dependent on whether your parents claim you as a dependent or not). This will give you your rough taxable base. Then take out FICA taxes (6.2%) and then income taxes of 10% on the first $8,925 and 15% after that (Assuming you don't clear $36,350 of taxable income).
So, looks like you're looking at taking home $18,300 (assuming you can claim the whole $10,000 which is unlikely) to $16,000 (assuming you claim none of the $10,000).
Hope this helps.
Thanks for the help. I'm not international and I'm working for a bb. I've heard a lot of different things about taxes, so wasn't sure. It's funny how little you know about this stuff even as a finance/acct major.
For FT, how are bonuses taxed? Let's say your bonus is 40K...is that really taxed at 50%?
Here is a link for info on taxes on bonuses: http://blog.turbotax.intuit.com/2011/12/09/bonus-time-how-bonuses-are-t…
The 50% figure is generally what is thrown around for the NYC crowd who has to deal with state and city income taxes.
Here is a link for the rate schedules for 2013: http://taxes.about.com/od/Federal-Income-Taxes/qt/Tax-Rates-For-The-201…
This should be all the info you need to get a rough estimate of you tax bill. You will be able to claim the full $10,000 when you are full-time assuming you are no longer claimed as a dependent by your parents (I don't believe there is a point in doing it once you're employed w. health insurance).
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