Chicago Take-home Pay After Taxes

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John26
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Chicago Take-home Pay After Taxes

Postby John26 » Wed Sep 29, 2010 11:54 am

Hey guys, I am about to begin as a full-time associate here in Chicago. I'm trying to make some sort of budget. I saw that someone posted the after-tax take-home pay for NYC; anyone privy to the same info for Chicago? The only addition to the tax factor would be assume maxing out a 401k.

aph
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Joined: Wed Nov 12, 2008 3:26 pm

.

Postby aph » Wed Sep 29, 2010 12:03 pm

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Last edited by aph on Fri Oct 08, 2010 9:08 pm, edited 1 time in total.

09042014
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Re: Chicago Take-home Pay After Taxes

Postby 09042014 » Wed Sep 29, 2010 12:05 pm

State income tax is basically 3% with some negligible deductions.
Last edited by 09042014 on Wed Sep 29, 2010 12:05 pm, edited 1 time in total.

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Objection
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Re: Chicago Take-home Pay After Taxes

Postby Objection » Wed Sep 29, 2010 12:05 pm

--LinkRemoved--

005618502
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Re: Chicago Take-home Pay After Taxes

Postby 005618502 » Wed Sep 29, 2010 12:06 pm

.

John26
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Re: Chicago Take-home Pay After Taxes

Postby John26 » Wed Sep 29, 2010 12:21 pm

All right, so here's what I got (paid twice per month; with the 401k taking out the max $16,500 per year--balanced over 24 pay periods; taking 2 state and federal allowances).

Your Pay Check Results
Semi-monthly Gross Pay: $6,666.67
Federal Withholding: $1,302.97
Social Security: $413.33
Medicare: $96.67
Illinois: $174.38
401k: $687.50

Net Pay: $3,991.82

Sounds good enough for me. If I screwed anything up, let me know.

boolaw
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Re: Chicago Take-home Pay After Taxes

Postby boolaw » Wed Sep 29, 2010 1:30 pm

John26 wrote:All right, so here's what I got (paid twice per month; with the 401k taking out the max $16,500 per year--balanced over 24 pay periods; taking 2 state and federal allowances).

Your Pay Check Results
Semi-monthly Gross Pay: $6,666.67
Federal Withholding: $1,302.97
Social Security: $413.33
Medicare: $96.67
Illinois: $174.38
401k: $687.50

Net Pay: $3,991.82

Sounds good enough for me. If I screwed anything up, let me know.


OMG.

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homestyle28
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Re: Chicago Take-home Pay After Taxes

Postby homestyle28 » Wed Sep 29, 2010 1:32 pm

John26 wrote:All right, so here's what I got (paid twice per month; with the 401k taking out the max $16,500 per year--balanced over 24 pay periods; taking 2 state and federal allowances).

Your Pay Check Results
Semi-monthly Gross Pay: $6,666.67
Federal Withholding: $1,302.97
Social Security: $413.33
Medicare: $96.67
Illinois: $174.38
401k: $687.50

Net Pay: $3,991.82

Sounds good enough for me. If I screwed anything up, let me know.


Don't forget you're pre-tax health insurance costs.

John26
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Joined: Tue Sep 28, 2010 7:21 pm

Re: Chicago Take-home Pay After Taxes

Postby John26 » Wed Sep 29, 2010 1:33 pm

boolaw wrote:
OMG.


? Remember, that's x 24 and $16.5k was taken out (pre-Fed/State tax) for 401k. Add that back in and you've got another $10k or so per year.

Edit: what are typical health insurance costs? I have no idea about that.

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mountaintime
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Re: Chicago Take-home Pay After Taxes

Postby mountaintime » Wed Sep 29, 2010 1:47 pm

in response to that paycheck calculator: tax breaks for married people are such fucking bullshit

westbayguy
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Re: Chicago Take-home Pay After Taxes

Postby westbayguy » Wed Sep 29, 2010 2:01 pm

mountaintime wrote:in response to that paycheck calculator: tax breaks for married people are such fucking bullshit


Seriously? It's called the marriage PENALTY. You pay way more tax as a married couple than you do as 2 single people. The second income is taxed at the heigher tax rates.

Look at Obama's tax cuts, two lawyers will be "wealthy" and get no tax cut ("soak the rich"). Hey it's a lot of money and a lawyer couple is blessed. But they likely will be paying 25-30,000 a year in student loan repayments AND more income tax. "Tax equity"- I don't think so....

John26
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Re: Chicago Take-home Pay After Taxes

Postby John26 » Wed Sep 29, 2010 2:04 pm

Anonymous User wrote:
mountaintime wrote:in response to that paycheck calculator: tax breaks for married people are such fucking bullshit


Seriously? It's called the marriage PENALTY. You pay way more tax as a married couple than you do as 2 single people. The second income is taxed at the heigher tax rates.

Look at Obama's tax cuts, two lawyers will be "wealthy" and get no tax cut ("soak the rich"). Hey it's a lot of money and a lawyer couple is blessed. But they likely will be paying 25-30,000 a year in student loan repayments AND more income tax. "Tax equity"- I don't think so....


Highjackers, all.

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vanwinkle
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Re: Chicago Take-home Pay After Taxes

Postby vanwinkle » Wed Sep 29, 2010 2:09 pm

Anonymous User wrote:
mountaintime wrote:in response to that paycheck calculator: tax breaks for married people are such fucking bullshit


Seriously? It's called the marriage PENALTY. You pay way more tax as a married couple than you do as 2 single people. The second income is taxed at the heigher tax rates.

Look at Obama's tax cuts, two lawyers will be "wealthy" and get no tax cut ("soak the rich"). Hey it's a lot of money and a lawyer couple is blessed. But they likely will be paying 25-30,000 a year in student loan repayments AND more income tax. "Tax equity"- I don't think so....

1) Why so anonymous?

2) The legal employment forum isn't for arguing politics, if you want to have a discussion of the politics of tax law, then go start a thread in the lounge.

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mountaintime
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Re: Chicago Take-home Pay After Taxes

Postby mountaintime » Wed Sep 29, 2010 2:33 pm

please help me understand this. So even though the first income gets greatly reduced taxes, the second income is taxed more? I had always heard that married people pay less in the taxes, and then when I entered info into this link with a $125k income once as single and once as married, the married person had a significantly higher take-home pay.

09042014
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Re: Chicago Take-home Pay After Taxes

Postby 09042014 » Wed Sep 29, 2010 2:36 pm

mountaintime wrote:please help me understand this. So even though the first income gets greatly reduced taxes, the second income is taxed more? I had always heard that married people pay less in the taxes, and then when I entered info into this link with a $125k income once as single and once as married, the married person had a significantly higher take-home pay.


If you marry another high paid lawyer you get kind of fucked if you file together. However if you marry a girl who is a waitress and makes 10K a year, you make out. It has to do with the marginal tax rate system we have.

Anonymous User
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Re: Chicago Take-home Pay After Taxes

Postby Anonymous User » Wed Sep 29, 2010 4:21 pm

You have to keep in mind that Chicago has the highest sales taxes in the country. So even though there is no city income tax, you are paying the equivalent of maybe an extra 2-3% income tax in sales tax vs. an area with the standard 6%-ish sales tax.

And yeah, I think that's right about the marriage tax benefit/penalty. Basically, the government is subsidizing you to get a trophy wife/husband. Not the most intelligent thing IMO but it's kind of an inherent consequence of combining joint filing with progressive marginal taxes.

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Spoonmanners
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Re: Chicago Take-home Pay After Taxes

Postby Spoonmanners » Wed Sep 29, 2010 11:05 pm

So, if in Illinois... marry poor for the money?

colovia
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Re: Chicago Take-home Pay After Taxes

Postby colovia » Wed Sep 29, 2010 11:16 pm

Anonymous User wrote:So, if in Illinois... marry poor for the money?


Or rather, in the entire country, marrying poor won't cost you as much as you might think it would :)

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BunkMoreland
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Re: Chicago Take-home Pay After Taxes

Postby BunkMoreland » Wed Sep 29, 2010 11:26 pm

Better yet, don't get married and keep all the dough to yourself! 8)

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tome
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Re: Chicago Take-home Pay After Taxes

Postby tome » Thu Sep 30, 2010 10:54 am

BunkMoreland wrote:Better yet, don't get married and keep all the dough to yourself! 8)


but then you don't get the tax break

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tome
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Re: Chicago Take-home Pay After Taxes

Postby tome » Thu Sep 30, 2010 10:57 am

Anonymous User wrote:You have to keep in mind that Chicago has the highest sales taxes in the country. So even though there is no city income tax, you are paying the equivalent of maybe an extra 2-3% income tax in sales tax vs. an area with the standard 6%-ish sales tax.

And yeah, I think that's right about the marriage tax benefit/penalty. Basically, the government is subsidizing you to get a trophy wife/husband. Not the most intelligent thing IMO but it's kind of an inherent consequence of combining joint filing with progressive marginal taxes.



the system makes perfect sense. Lots of studies show that children benefit from having one parent or guardian stay at home and dedicate most of their time to raising the child. This gives an incentive to do this and makes it more feasible instead of having both parents/guardians work. The system, however, should be fixed so that people without kids don't get the break if one of them is just lazy. Also, because the focus should be on kids, it should make no difference if the couple is gay or straight, it should just matter whether they have kids.




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