BigLaw Salary Tax

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Anonymous User
Posts: 273328
Joined: Tue Aug 11, 2009 9:32 am

BigLaw Salary Tax

Postby Anonymous User » Wed Nov 19, 2014 3:04 pm

Can biglaw associates in NYC break down their average/effective federal income tax rate and discuss some of the "penalties" of making 160k. I know PEP, Pease, and AMT kick in (so any itemized including interest payments can't be deducted as a result of AMT), so do associates just rely on reimbursed expenditures (meals, travel) to make up some of those hits? Are biglaw firms stingy about reimbursing, leaving you with an itemized that can't be deducted?


dixiecupdrinking
Posts: 3142
Joined: Sun Oct 26, 2008 2:39 pm

Re: BigLaw Salary Tax

Postby dixiecupdrinking » Wed Nov 19, 2014 11:17 pm

You get screwed on income tax, basically. $96k net is a good estimate post-tax (fed/state/local/FICA/whatever else) and pre-payroll deductions. Firms reimburse all your business expenses.

Anonymous User
Posts: 273328
Joined: Tue Aug 11, 2009 9:32 am

Re: BigLaw Salary Tax

Postby Anonymous User » Wed Nov 19, 2014 11:49 pm

dixiecupdrinking wrote:You get screwed on income tax, basically. $96k net is a good estimate post-tax (fed/state/local/FICA/whatever else) and pre-payroll deductions. Firms reimburse all your business expenses.


Not to be a noob, but how liberally is "business expenses" interpreted? Is there usually a formal rule depending on the firm, an unwritten understanding industry-wide, or is it just whatever the hell you can possibly get the firm to approve?

GOATlawman
Posts: 175
Joined: Thu Oct 30, 2014 9:40 pm

Re: BigLaw Salary Tax

Postby GOATlawman » Wed Nov 19, 2014 11:52 pm

Anonymous User wrote:
dixiecupdrinking wrote:You get screwed on income tax, basically. $96k net is a good estimate post-tax (fed/state/local/FICA/whatever else) and pre-payroll deductions. Firms reimburse all your business expenses.


Not to be a noob, but how liberally is "business expenses" interpreted? Is there usually a formal rule depending on the firm, an unwritten understanding industry-wide, or is it just whatever the hell you can possibly get the firm to approve?


Varies by firm. They have set policies for everything

Some will make you buy your own 2nd monitor, some will give you one. I think some will contribute to your at-home docking station, but most places I know of at least this falls on you.

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fats provolone
Posts: 7125
Joined: Thu Oct 30, 2014 4:44 pm

Re: BigLaw Salary Tax

Postby fats provolone » Wed Nov 19, 2014 11:56 pm

at home docking station is so clutch




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