BigLaw SA: how much is taxed

(On Campus Interviews, Summer Associate positions, Firm Reviews, Tips, ...)
Forum rules
Anonymous Posting

Anonymous posting is only appropriate when you are revealing sensitive employment related information about a firm, job, etc. You may anonymously respond on topic to these threads. Unacceptable uses include: harassing another user, joking around, testing the feature, or other things that are more appropriate in the lounge.

Failure to follow these rules will get you outed, warned, or banned.
NotMyRealName09
Posts: 1397
Joined: Mon Nov 09, 2009 5:50 pm

Re: BigLaw SA: how much is taxed

Postby NotMyRealName09 » Thu Dec 25, 2014 2:25 pm

fats provolone wrote:i believe you input start and end date.


Ok yeah then just do that. The IRS knows their numbers.

User avatar
HankBashir
Posts: 536
Joined: Mon Jan 21, 2013 3:01 am

Re: BigLaw SA: how much is taxed

Postby HankBashir » Thu Dec 25, 2014 3:58 pm

This is gonna make look super stupid but: Where are y'all getting ~30 allowances from? I'm seeing like…2.

KM2016
Posts: 236
Joined: Wed Jul 09, 2014 1:20 am

Re: BigLaw SA: how much is taxed

Postby KM2016 » Thu Dec 25, 2014 4:07 pm

HankBashir wrote:This is gonna make look super stupid but: Where are y'all getting ~30 allowances from? I'm seeing like…2.


Sparknotes version: If you put the standard 1 or 2 allowances, you'll be taxed as if you're making $160k even though you're only making ~$31k. This means you'll be taxed a lot, and get a big fat tax return the following year. So to counteract being overtaxed, you declare ~30 allowances to only be taxed on your actual income ($31k). This means you get more up front and have no tax return.

User avatar
hoos89
Posts: 1969
Joined: Sun Jan 08, 2012 11:09 pm

Re: BigLaw SA: how much is taxed

Postby hoos89 » Thu Dec 25, 2014 4:26 pm

Does that take care of the tuition credit too?

jsmith201
Posts: 43
Joined: Mon Mar 12, 2012 10:56 pm

Re: BigLaw SA: how much is taxed

Postby jsmith201 » Tue Dec 30, 2014 8:07 am

Does anyone know how to work the system if you are filing a joint return with your spouse? Should I still use the same methods to avoid a huge refund and get more money upfront

User avatar
BVest
Posts: 7514
Joined: Tue Mar 20, 2012 1:51 pm

Re: BigLaw SA: how much is taxed

Postby BVest » Tue Dec 30, 2014 5:13 pm

jsmith201 wrote:Does anyone know how to work the system if you are filing a joint return with your spouse? Should I still use the same methods to avoid a huge refund and get more money upfront


Does your spouse have an income? It's pretty much the same... calculate what you expect your total income to be, do a calculation of taxes, and then adjust WH accordingly. But beware that there are penalties if you don't WH (or estimated voucher) 90% of your income tax due for the year (or 100% of what was due for the previous year -- lesser of the two). If you're concerned, (1) engage an accountant to do your taxes this year, and (2) ask them.

User avatar
Mozart Lacrimosa
Posts: 137
Joined: Wed Aug 13, 2014 1:01 pm

Re: BigLaw SA: how much is taxed

Postby Mozart Lacrimosa » Sat Jun 03, 2017 2:16 pm

Does claiming 10+ exemptions for the summer make it any more likely you'll get audited?

User avatar
Desert Fox
Progressively loosing literacy
Posts: 17594
Joined: Thu Sep 04, 2014 4:34 pm

Re: BigLaw SA: how much is taxed

Postby Desert Fox » Sat Jun 03, 2017 2:34 pm

Mozart Lacrimosa wrote:Does claiming 10+ exemptions for the summer make it any more likely you'll get audited?


Less likely because huge returns trigger audits. Like 15% of my law school got audited.

User avatar
Mickfromgm
Posts: 144
Joined: Thu Apr 20, 2017 11:40 pm

Re: BigLaw SA: how much is taxed

Postby Mickfromgm » Sat Jun 03, 2017 8:54 pm

Mozart Lacrimosa wrote:Does claiming 10+ exemptions for the summer make it any more likely you'll get audited?


I didn't know that IRS did enforcement any more.

Blackfish
Posts: 98
Joined: Wed Dec 25, 2013 9:58 am

Re: BigLaw SA: how much is taxed

Postby Blackfish » Sat Jun 03, 2017 9:01 pm

if you're dumb and enjoy giving an interest free loan to the govt, then claim 0 or 1 allowances and get a fat refund later. but if you're shrewd and know wtf is up you should be claiming a lot of allowances. money now is better than money later. time value of money and all that.

Anonymous User
Posts: 301564
Joined: Tue Aug 11, 2009 9:32 am

Re: BigLaw SA: how much is taxed

Postby Anonymous User » Sat Jun 03, 2017 9:08 pm

Blackfish wrote:if you're dumb and enjoy giving an interest free loan to the govt, then claim 0 or 1 allowances and get a fat refund later. but if you're shrewd and know wtf is up you should be claiming a lot of allowances. money now is better than money later. time value of money and all that.

What can you ethically claim 10 allowances for if you're single? I kept reading the tax form but found nothing I could add to my lonely "1."

Anonymous User
Posts: 301564
Joined: Tue Aug 11, 2009 9:32 am

Re: BigLaw SA: how much is taxed

Postby Anonymous User » Sat Jun 03, 2017 9:47 pm

I just claimed 9 since the form said claiming 10+ will trigger IRS flags or some shit.

I only claimed 2 for NY state tax since the form said specifically that they will fine the fuck out of you if you claim extra allowances that would lower taxes initially paid.

Anonymous User
Posts: 301564
Joined: Tue Aug 11, 2009 9:32 am

Re: BigLaw SA: how much is taxed

Postby Anonymous User » Sat Jun 03, 2017 9:51 pm

Anonymous User wrote:I just claimed 9 since the form said claiming 10+ will trigger IRS flags or some shit.

I only claimed 2 for NY state tax since the form said specifically that they will fine the fuck out of you if you claim extra allowances that would lower taxes initially paid.

What categories did you use to to get up to 9?

User avatar
BVest
Posts: 7514
Joined: Tue Mar 20, 2012 1:51 pm

Re: BigLaw SA: how much is taxed

Postby BVest » Sat Jun 03, 2017 10:10 pm

You don't need categories. The worksheet is just that, a worksheet. All you need to do is put the number on the W-4. It's not binding and not indicative of how many dependents you will claim on your 1040. It means nothing other than to signal to the employer how much withholding you want taken out. If you don't have enough withheld, that's on you and you alone (and you'll have some penalty/interest to pay).

User avatar
Mozart Lacrimosa
Posts: 137
Joined: Wed Aug 13, 2014 1:01 pm

Re: BigLaw SA: how much is taxed

Postby Mozart Lacrimosa » Sun Jun 11, 2017 8:05 am

Desert Fox wrote:
Mozart Lacrimosa wrote:Does claiming 10+ exemptions for the summer make it any more likely you'll get audited?


Less likely because huge returns trigger audits. Like 15% of my law school got audited.


Wow this actually makes sense.

Anonymous User
Posts: 301564
Joined: Tue Aug 11, 2009 9:32 am

Re: BigLaw SA: how much is taxed

Postby Anonymous User » Sun Jun 11, 2017 11:12 am

Did 30 allowances.. Firm didnt let me do that, said I would be underwithheld. Told them I used the IRS calculcator, and they still didnt agree. So now I have 10 allowances and will be overwitheheld by probably around 5-7k. Thanks




Return to “Legal Employment”

Who is online

The online users are hidden on this forum.