Hey everyone,
New attending here, just signed contract for w2 employed position, starting Oct with no partnership track. So I just got through reading WCI post on "Doctors aren't taxed at 50%" as I am estimating my future tax burden, I estimate it at 47%. For reference link and numbers, see below.
https://www.whitecoatinvestor.com/doctors-dont-pay-50-of-their-income-in-taxes/
Here is the brief background:
Salary- 380k per annum, renting, no student loans,
single, no kids although will likely be married next year(She makes over 100k, so we would be hit by marriage penalty, by my numbers are tax burden would be worse). For purposes of this exercise I did single and MFJ/MFS but am just listing out my single estimates
I ran the numbers for a given month's paycheck and here is what I get
So lets take 8904+1963+459+3132+285= $14743 (monthly tax burden) x 12month = $176916 (annual tax burden)
Annual tax burden/annual salary = 176916/380000 = 47%
So what am I doing wrong? Am I just essentially screwed unless I leave California, buy 2 expensive houses, and have 5 dependents? Seems like living on 20k as a resident and paying off loans/investing was kinda comically pointless when compared to 3years resident salary per year in taxes.
Confused Sloth
New attending here, just signed contract for w2 employed position, starting Oct with no partnership track. So I just got through reading WCI post on "Doctors aren't taxed at 50%" as I am estimating my future tax burden, I estimate it at 47%. For reference link and numbers, see below.
https://www.whitecoatinvestor.com/doctors-dont-pay-50-of-their-income-in-taxes/
Here is the brief background:
Salary- 380k per annum, renting, no student loans,
single, no kids although will likely be married next year(She makes over 100k, so we would be hit by marriage penalty, by my numbers are tax burden would be worse). For purposes of this exercise I did single and MFJ/MFS but am just listing out my single estimates
I ran the numbers for a given month's paycheck and here is what I get
Gross Pay $31,666.67
Federal Withholding $8,904.19
Social Security $1,963.33
Medicare$459.17
California$3,132.13
SDI$285.00
5.5k annual to in IRA and 18k to 401k = $1,958.00 (of note there is no match or employer contribution)
Net Monthly Pay
Net Pay$14,964.85
So lets take 8904+1963+459+3132+285= $14743 (monthly tax burden) x 12month = $176916 (annual tax burden)
Annual tax burden/annual salary = 176916/380000 = 47%
So what am I doing wrong? Am I just essentially screwed unless I leave California, buy 2 expensive houses, and have 5 dependents? Seems like living on 20k as a resident and paying off loans/investing was kinda comically pointless when compared to 3years resident salary per year in taxes.
Confused Sloth
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