Tax Plan and NYC Income

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Re: Tax Plan and NYC Income

Postby cfcm » Mon Dec 04, 2017 4:59 pm

BenJ wrote:
Hikikomorist wrote:
UpandDown97 wrote:FWIW partners make more money under the senate version with the decrease in the rate on pass-through businesses and overall lower income rates. More houses in the Hamptons for them, I guess.

Aren't they still excluding law firms as "service providers"?

Yeah, I think partners actually get really walloped by the tax plan, even more than associates, since they don't get the special pass-through treatment (if they did, it would be a huge tax cut for them - and there may end up being creative ways to structure for partners to get the tax benefits of the pass-through rates that accountants will figure out over the next year). Associates living in NYC might pay 2-3% more in taxes (with first-years getting a small cut and senior associates a slightly bigger increase), but partners living in NYC could be looking at their taxes going up by 10%. OTOH, many partners live in the NYC suburbs so don't pay city income tax - though if they have big mortgages and pay a lot in property tax it could be just as bad or worse for the suburban partners.

Note that married couples make out much better than unmarried individuals under the Senate plan, so partners who are married will be advantaged that way. The Senate plan largely closes the marriage penalty while the House plan mostly does not.

As more relevant here, I think divorce got a lot more expensive too.. ... ty-2017-11

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Re: Tax Plan and NYC Income

Postby Anonymous User » Mon Dec 04, 2017 5:14 pm

I don't mean to piggyback on this thread but I was wondering if any of you guys know if there is a good "American taxes for dummies" kind of resource. :mrgreen: I'm an international, just started law school in the US, and don't understand really well how FICA, 401(K) and other stuff works. I also don't understand much about employment benefits so I can't really compare different firms based on their benefits package. Any advice?

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