Taxes - Low down on taxes?
So I'm sure this has been mentioned before. But I can't really find any specific answer. I just moved to NYC to start at an economic consulting firm. I was curious what's the low down on taxes. I come from FL, so we don't have state income tax or municipal taxes. Just federal.
So when I got my signing bonus a small part of me died when I saw that over 30% was gone. Getting my first pay checks and I'm still dying.
My question, is, how much do you get back of this stuff when you file at the end of the year? Do you get anything back or not? All I have to go on is in FL, where you file and can get a lot back.
Is the NYC tax just gone? Is the state tax gone? Or do you get any of that back?
Really starting to have a hard time realizing how people survive in this city financially. I know I'm fresh out of college... but my 60k is going no where...
That's because you need to make like 120k to buy what 60k does in Florida. Lol.
No one can answer your question unless you tell us your exact gross income. You can figure out your effective tax rate exactly if you know this - just look up federal tax brackets, NY state tax brackets, NY city tax (it's not in brackets but you can still calculate it), and don't forget social security + medicare taxes. Of course there is a difference between withholding and actual taxes. Assuming you entered zero allowances on your W-4 typically the amount of tax withheld is conservative. The IRS would rather end up owing you some money at the end of the year than you owing them since most people aren't responsible enough to put aside their own money for taxes. Because of that expect to get some refund, especially if your gross income is low.
Bonuses are always withheld extremely conservatively.
Also you're correct - you need to be very frugal to save anything living on 60k in NYC. If you go out a lot and are not careful you will likely end the year with a bunch of CC debt and no savings. That's not great but it's not the end of the world if you expect your income to rise in the future and you can stay on top of your debt. My only recommendation is don't eat out unless it's a date or your bros are in town or something and pregame heavily/find the cheap bars (the NYU downtown bars are perfect for this - cheap and full of a bunch of other young people).
No one is putting a gun to your head making you live in Manhattan. On 60k I would probably suck it up and live in brooklyn or queens with roommates for about $600/month and on that you can definitely save money.
Finally do consider the fact that a comparable job would probably pay 35-45k in Florida.
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