AVBucks4239 wrote:One other thing about PAYE: I plan to go solo within a year or two. When you are self-employed, so much is deductible from AGI that I bet a good amount that you can get your payments comically low.
Say you make $100k income, you can deduct...
401k: $18,000 plus 25% of net income (call it $13,000 in my scenario, but can be up to $53,000 total);
Traditional IRA: $5,500
Home Office Deduction: obviously varies but mine would be about $1800
Automobile Expenses: $3,000
CLE Deductions: $1,000
Deduct half of self-employment tax
Internet and Phone: $5,000
Health Insurance: $4,000
There's more but I'm too lazy to look them up, but that brings AGI down to about $45,000, which means student loan payments between $175-200 (which then contribute to student loan interest deduction).
Just something to think about if you think you might have an itch to go solo.
Being self-employed, you can utilize the mega backdoor Roth method (socking away 53k in solo-401k plan) to reduce ur AGI significantly.