I was doing some tax calculations, and I stumbled into some numbers that were quite surprising, to say the least.
Here are some numbers for 2017, using the new tax laws. The old system yields very similar results. Numbers are rounded.
Total Income: $146,500
Total Taxable Income: $96,000
AGI (taxable income - standard deduction): $84,000
Tax Due: $14,500
Contributed about $13,000 to TSP, only $6,500 of which was traditional contribution.
This comes out to be a ~10% effective tax rate. I am sure I could get this down to 8-9% by contributing to $18,500 all to traditional.
Thoughts on this guys? Throughout residency I was sure I would get out as soon as my commitment was up. But now when I do the numbers for a staff physician, this 9% effective tax rate seems attractive. In my estimation, I produce 1/3 to 1/2 of the RVUs of the average civilian in my specialty, hence I am never stressed at work. I could get my actual medicine related tasks done in 4-5 hours on an average day, that is not being rushed at all. This could be seen as a good or bad thing.
There is also that pension/medical to think about. That has to have some value. I can't believe I am even writing this, as I was vehemently against staying in any longer than absolutely necessary. I think a lot of this may come down to the assignments given. I rate my residency assignment as a 10/10, but first staff assignment as a 6/10. These ratings are combined work and life.
Here are some numbers for 2017, using the new tax laws. The old system yields very similar results. Numbers are rounded.
Total Income: $146,500
Total Taxable Income: $96,000
AGI (taxable income - standard deduction): $84,000
Tax Due: $14,500
Contributed about $13,000 to TSP, only $6,500 of which was traditional contribution.
This comes out to be a ~10% effective tax rate. I am sure I could get this down to 8-9% by contributing to $18,500 all to traditional.
Thoughts on this guys? Throughout residency I was sure I would get out as soon as my commitment was up. But now when I do the numbers for a staff physician, this 9% effective tax rate seems attractive. In my estimation, I produce 1/3 to 1/2 of the RVUs of the average civilian in my specialty, hence I am never stressed at work. I could get my actual medicine related tasks done in 4-5 hours on an average day, that is not being rushed at all. This could be seen as a good or bad thing.
There is also that pension/medical to think about. That has to have some value. I can't believe I am even writing this, as I was vehemently against staying in any longer than absolutely necessary. I think a lot of this may come down to the assignments given. I rate my residency assignment as a 10/10, but first staff assignment as a 6/10. These ratings are combined work and life.
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