NYC Tax?

[quote=advdvnvp]you read chodorov?

http://www.mises.org/etexts/rootofevil.asp[/quote]

No I actually came to that realization on my own when I saw a 1040.

estalol:

Are you guys serious man? So say if you make 60K base and 40k bonus, how much do you get to take home? 50k? That's ridiculous man!

Now I understand what they were complaining about. You'd have to be insane to start a business here or choose to take a job here that you could get in Chicago or LA.

thestressed84:

WOW. I had not expected to have almost half of my first year compensation taken away by uncle sam....man....at least I get to start in July and only pay for half of a years salary. Screw the IRS.

jj80:

yah but even with a good share paying 1250 is close to impossible

IMHO, it can still be done across the river in Jersey without getting stuck in that dumpy of a neighborhood. Heck, you can probably get away with $700/month in Journal Square Then again, I spent part of my spring break at a house with rotting floor joists along with a crack addict and prostitute as tenants (long story), so my standards for neighborhoods are going to be pretty low.

Just as long as the building's solid, there's no bugs, I won't get mugged for being white, and my roommates won't attack each other violently or cause me to fail drug tests, I'll be happy.

Oconnor:

It's funny, I always believed all that stuff about the US being a low tax country etc etc but from what I can see analysts in NY end up paying more or less the same as in London.

Actually income taxes (inc. social security) are a lot HIGHER in NY, not the same. In London, total income taxes and national insurance (UK social security) come to 27% of a £35,000 income. Look at the numbers being thrown around here. Total tax take on $60k in NY seems to be around 32-35%.

sleepyguyb:

Become republicans.

It's funny, I always believed all that stuff about the US being a low tax country etc etc but from what I can see analysts in NY end up paying more or less the same as in London.

If you were comparing it against Chicago, analysts over there would be paying 7% less in taxes. Taxes in New York are some of the most suffocating in the country.

sleepyguyb:

Become republicans.

No, become a libertarian and VOTE libertarian. They want to ABOLISH the personal income tax. This will benefit all of us.

Seanc:

you really think a libertarian is gonna win an election anytime soon ?

Seanc:

Their gains are miniscule. I would vote for them if they had a shot. But as of now, Romney is getting my vote.

Here you go:

http://www.paycheckcity.com/netpaycalc/netpaycalculator.asp

Slow down little red corvette. 20% tax on your bonus? You might want to multiply that rate by 2.5. Either way. DO NOT SPEND YOUR BONUS UNTIL YOU SEE IT IN YOUR ACCOUNT. That's the only way to really know the exact dollar amount.

Just a note: Taxes aren't really deducted from your paycheck per se, they are withheld. When you figure out your tax liability after the year is over, your withholdings (credits) are applied. If you had too much withheld, you get a refund. Too little withheld, then you owe the IRS the missing portion plus fees/interest.

This applies for Federal, State, and City taxes, if applicable.

You can adjust the amount that is withheld from your paycheck if you think too much or too little will be applied to your tax liability. The higher the number of allowances, the less that is withheld.

FICA taxes (Medicare and Social Security) are always correctly taken out of your pay.

Your 30% sounds about right as long as you're single w/ no dependents.

Bonuses and commissions get taxed at about/a little under 50% so you'll only see $7500 if you "get" 15k

~81.5%

City tax rate is 4.25%, minus any of your usual deductions.

102%

http://www.nytimes.com/2012/02/04/business/at-102-his-tax-rate-takes-th…

Yeah, can't recall the exact number offhand, but it's somewhere between 50% and wtf is this sh1t.

city income tax is $1706 plus 3.648% over 50k taxes suck in the city not only do you have to pay fed and state tax, you have to pay a residency tax. Beyond that everything you buy is taxed pretty much.

do you "purchase" monthly metro cards or vouchers from your employer?

if so, they should be deducted pretax from your pay.

if you work at a big bank, it probably offers a program through employee benefits, transitchek, flexdirect, or one of those things.

http://www.paycheckcity.com/netpaycalc/netpaycalculator.asp

Thanks! ...Ouch. NYC tax is brutal. Any insight on the housing question?

I come from a long line of thrifty Dutch Calvinists; I think a cap of 25% of gross salary/fixed comp outside NYC, or about 23% within NYC (adjustment for city tax) is a good place to try and aim for. So if your salary is $84K/year, that's $7K/month gross; you should try and stay at or under $1600/month in NYC or $1750/month in Westchester.

If you work in IBD or a really intense group involving 80+ hours/week, you should ignore this budget and instead go for a nearby place, but you will have to scrimp and save in other ways your first year.

http://www.amazon.com/Smart-Where-Did-All-Money/dp/0984493743

I really like this book and how the author teaches about budgeting and sound investing. instead of trying to sell you something sensational, it's realistic advice and helps you plan for retirement...

Just in case you're still not sold on reading the book, he says 35% of your income should be spent on housing, and that includes utility bills and anything that is associated with housing, not just rent. he also advocates to save at least 10% of income. He says that if you need a higher percentage for rent, it's fine, just tune down the percentages for other categories...

Sublet or something and have your address outside NYC. No need to be robbed unless absolutely necessary. Bloomberg will surly find another way to shake you down.

I have friends who do exactly this, claim their residence is outside the city (usually where they grew up). Unfortunately in my case, while that may work for people who grew up in NY/NJ/CT, I think the tax authorities would have a tough time believing that I commute into NYC from a thousand miles away in the midwest each day.

Do a month to month in NJ or PA, get a PO box and then keep the PO box. You have to be making a good amount for them to want to go through the trouble of verifying your place of residence. Philly has a rule where you pay the tax if you work in the city so I can't avoid it myself.

I have friends who do exactly this, claim their residence is outside the city (usually where they grew up). Unfortunately in my case, while that may work for people who grew up in NY/NJ/CT, I think the tax authorities would have a tough time believing that I commute into NYC from a thousand miles away in the midwest each day.

Of course. So someone in your shoes might as well do things differently than the other analysts and be honest. It's a best practice anyways if you plan on getting rich and/or going into politics one day. Because one day, NY State will audit you and try to find out where you live if you're earning a certain amount.

I don't think thats always the case because Bloomberg and the NY legislature were trying to pass a law to 'capture' more of the income earned by those that live in NJ and work in NYC.

Doesn't your income get taxed at the rate of the state you earn it in?

Additionally, as an NJ resident, your dividend, interest, capital gains, and non-work income is all taxed at a lower rate than it would be in NY state. Wealthy Connetikites get an even better deal than Hoboken/Jersey City residents on tax rates, but NJ generally has lower income taxes than NY. And you don't want to be a 22-year-old living in the suburbs.