I'm still a resident, but I'm starting to look at employment offers for real jobs with post-residency salaries attached. We've kept a reasonable budget so far, but our Investor Policy Statement hasn't had to go much beyond putting some towards loans and Roth, so it's exciting to start to think about all the new three-letter (or number) accounts I'll be able to start using soon.
But step 1 is figuring out how much money we'll even have to use once the IRS has taken its cut, and all the tax estimation calculators and rules of thumb or back of the envelope methods are extremely unsatisfying and sometimes even pretty far off once you get into higher incomes or have any special case applying that changes things.
I know there's an excel 1040 out there that apparently works well, but it seems to be constructed very much as a black box that just does the calculations for you without adding any to understanding of what's affecting your taxes.
I was just wondering if anyone had a system that helped them accurately estimate taxes and also allowed them to quickly evaluate different scenarios to see how different investing or allocation strategies affect tax liabilities.
I studied engineering in undergrad, and we had some pretty big projects that we modeled entirely in excel, with interconnected values appropriately affecting results downstream, even to the point of exporting to and updating a CAD model of the project. My dream is to do something like this that connects our budget, taxes, and investing. I think it'll help with any sort of decision-making that has to be done, and by getting a tax model together, I think understanding whatever the current tax situation is will help with understanding how any changes really affect you.
But step 1 is figuring out how much money we'll even have to use once the IRS has taken its cut, and all the tax estimation calculators and rules of thumb or back of the envelope methods are extremely unsatisfying and sometimes even pretty far off once you get into higher incomes or have any special case applying that changes things.
I know there's an excel 1040 out there that apparently works well, but it seems to be constructed very much as a black box that just does the calculations for you without adding any to understanding of what's affecting your taxes.
I was just wondering if anyone had a system that helped them accurately estimate taxes and also allowed them to quickly evaluate different scenarios to see how different investing or allocation strategies affect tax liabilities.
I studied engineering in undergrad, and we had some pretty big projects that we modeled entirely in excel, with interconnected values appropriately affecting results downstream, even to the point of exporting to and updating a CAD model of the project. My dream is to do something like this that connects our budget, taxes, and investing. I think it'll help with any sort of decision-making that has to be done, and by getting a tax model together, I think understanding whatever the current tax situation is will help with understanding how any changes really affect you.
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