Projected Difference in Monthly Net Pay

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Difference in Monthly Net Pay

Poll ended at Tue Jan 30, 2018 12:38 pm

No Difference
3
14%
$100
4
18%
$200
5
23%
$300
3
14%
$400
3
14%
+$500
4
18%
 
Total votes: 22

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Johann

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Re: Projected Difference in Monthly Net Pay

Postby Johann » Tue Jan 02, 2018 2:38 pm

Anonymous User wrote:I tried that, there are way too many variables. The Jan-Feb paycheck difference is calculated on current financial info…..basically apples-to-apples and nothing to do with my 2018 taxable income (given annual pay & bonus increases). Maybe the link I am asking for just does not exist.

The link you are asking for requires you to do minimally competent math like divide your yearly change by the number of paychecks you get.

Anonymous User
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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Tue Jan 02, 2018 2:53 pm

Johann wrote:
Anonymous User wrote:I tried that, there are way too many variables. The Jan-Feb paycheck difference is calculated on current financial info…..basically apples-to-apples and nothing to do with my 2018 taxable income (given annual pay & bonus increases). Maybe the link I am asking for just does not exist.

The link you are asking for requires you to do minimally competent math like divide your yearly change by the number of paychecks you get.

LOL...taking the year-end # and dividing it by 12 (or 24). Not even close, NP, will know on Feb 1. Thanks anyway.

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A. Nony Mouse

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Re: Projected Difference in Monthly Net Pay

Postby A. Nony Mouse » Tue Jan 02, 2018 2:55 pm

Anonymous User wrote:
Johann wrote:
Anonymous User wrote:I tried that, there are way too many variables. The Jan-Feb paycheck difference is calculated on current financial info…..basically apples-to-apples and nothing to do with my 2018 taxable income (given annual pay & bonus increases). Maybe the link I am asking for just does not exist.

The link you are asking for requires you to do minimally competent math like divide your yearly change by the number of paychecks you get.

LOL...taking the year-end # and dividing it by 12 (or 24). Not even close, NP, will know on Feb 1. Thanks anyway.

So calculate what your take home would be with your annual raise and projected bonuses, and then add the tax savings divided by how ever many paychecks you get? Like if you don't know what your new base take home is going to be of course you can't know what the tax savings will be, but I don't think that's the link's fault.

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Tue Jan 02, 2018 7:44 pm

If in January the government taxes “×%” of your income and starting in February they tax a lesser %, the [%] difference will provide the answer. The thing is, not sure how much of a lesser % it will be.

There really should be an app for this. Seems like most people here are looking at a +300 difference.

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BlendedUnicorn

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Re: Projected Difference in Monthly Net Pay

Postby BlendedUnicorn » Tue Jan 02, 2018 7:52 pm

Anonymous User wrote:I tried that, there are way too many variables. The Jan-Feb paycheck difference is calculated on current financial info…..basically apples-to-apples and nothing to do with my 2018 taxable income (given annual pay & bonus increases). Maybe the link I am asking for just does not exist.


Enter your info without bonus. Divide by 12. That’s your difference.

Nebby

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Re: Projected Difference in Monthly Net Pay

Postby Nebby » Tue Jan 02, 2018 7:53 pm

BlendedUnicorn wrote:
Anonymous User wrote:I tried that, there are way too many variables. The Jan-Feb paycheck difference is calculated on current financial info…..basically apples-to-apples and nothing to do with my 2018 taxable income (given annual pay & bonus increases). Maybe the link I am asking for just does not exist.


Enter your info without bonus. Divide by 12. That’s your difference.

That's way too difficult, apparently.

Also, why anonymous?

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Tue Jan 02, 2018 8:28 pm

Nebby wrote:
BlendedUnicorn wrote:
Anonymous User wrote:I tried that, there are way too many variables. The Jan-Feb paycheck difference is calculated on current financial info…..basically apples-to-apples and nothing to do with my 2018 taxable income (given annual pay & bonus increases). Maybe the link I am asking for just does not exist.


Enter your info without bonus. Divide by 12. That’s your difference.

That's way too difficult, apparently.

Also, why anonymous?

I was at the office with TLS on the screen, called into a meeting and left office with TLS still on. There is a long story, but the Short story.... no longer anonymous. Only post on the most non-law generic topics.

I did the simple divide by 12/24....came up with +300. Not buying this method for a Jan-Feb comparison, for the year, possibly.

Nebby

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Re: Projected Difference in Monthly Net Pay

Postby Nebby » Tue Jan 02, 2018 8:32 pm

Anonymous User wrote:
Nebby wrote:
BlendedUnicorn wrote:
Anonymous User wrote:I tried that, there are way too many variables. The Jan-Feb paycheck difference is calculated on current financial info…..basically apples-to-apples and nothing to do with my 2018 taxable income (given annual pay & bonus increases). Maybe the link I am asking for just does not exist.


Enter your info without bonus. Divide by 12. That’s your difference.

That's way too difficult, apparently.

Also, why anonymous?

I was at the office with TLS on the screen, called into a meeting and left office with TLS still on. There is a long story, but the Short story.... no longer anonymous. Only post on the most non-law generic topics.

I did the simple divide by 12/24....came up with +300. Not buying this method for a Jan-Feb comparison, for the year, possibly.

If you're not a first year, then I think it'll be fairly close.

BenJ

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Re: Projected Difference in Monthly Net Pay

Postby BenJ » Wed Jan 03, 2018 9:18 pm

Anonymous User wrote:
Johann wrote:
Anonymous User wrote:
Johann wrote:
Anonymous User wrote:
BenJ wrote:http://taxplancalculator.com/


Junior big law partner in NYC. This shows my taxes going up by about $1,000 per month.

yeah you single? if so checks out.


No. Married with three kids.

oh yeah, personal exemption limitations for the kids and the new income brackets for those dollars between 200k-415k got you.

property owner?


Yes, I own my apartment. No idea what it's attributable to. If I play with that calculator, it actually shows $200k-415k as good dollars for me. At $415k I would be just about breaking even. All the loss is between $450k-550k.


It's all about SALT deductions. Losing SALT deductions hurts you for the entire income range but gets worse the higher your income is, and there are countervailing factors helping you lower down (in particular, the closing of the marriage penalty at lower incomes). Loss of personal exemptions shouldn't matter because at $550k MFJ the personal exemptions have already phased out anyway. The figures would look much, much worse if you were single. Owning your apartment also makes it worse because you would otherwise take the standard deduction with the loss of SALT deductions, which was increased somewhat (and in a way that really benefits you since the loss of the personal exemption doesn't affect you at all anyway due to the phase out), but instead you would still itemize for the mortgage interest deductions and don't benefit from the increased standard deduction.

That being said, this calculator doesn't take into the AMT, which could change your figures.

Edit: Saw you said $1k/month rather than $1k/year. I can't reproduce that with reasonable assumptions about mortgage/charity/etc. deductions and property taxes, so there may be something entered incorrectly. $12k/year increase seems really high (and actually the calculator gives you a big tax cut if you didn't have any mortgage/charity deductions or property tax). I do get an $11k/year increase in taxes if you were filing as single with a $550k income, though, which might be the issue.

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Thu Jan 04, 2018 12:34 pm

What effect, if any, would SALT have on the variance of your net income between January and February?

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Thu Jan 04, 2018 1:06 pm

I work in non-Federal government and make $55k-60k a year, and I'm projected to save ~$1400... a year. Although I'm in a really weird place with my taxes since I own my place and get a few thousand in rental income from a roommate, but due to itemizing and depreciating my home value I end up with a >$2.5k refund every year. After playing around with these tax calculators and running through scenarios in my head, as a practical matter I think this tax bill will do what I had been meaning to do myself and adjust my withholdings to give me an extra ~$80 a paycheck but also mostly wipe out my tax refund.

All that said, at my level of income an extra $80 a paycheck makes a difference, but I'm bad at saving money so I'll miss that huge income boost once a year.

albanach

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Re: Projected Difference in Monthly Net Pay

Postby albanach » Thu Jan 04, 2018 3:42 pm

SplitMyPants wrote:marriage penalty mostly went away (except for couples earning > $600,000)

so i guess i dont have to hold off marrying my fiance (who is also just starting in biglaw) for tax purposes, which is nice


Except the SALT cap is $10k for single and married, right?

I'm in a secondary market, but my property tax is $10k alone. My state and city taxes add $6k and my spouse will be higher since they're taxed in two cities.

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Thu Jan 04, 2018 6:09 pm

BenJ wrote:Edit: Saw you said $1k/month rather than $1k/year. I can't reproduce that with reasonable assumptions about mortgage/charity/etc. deductions and property taxes, so there may be something entered incorrectly. $12k/year increase seems really high (and actually the calculator gives you a big tax cut if you didn't have any mortgage/charity deductions or property tax). I do get an $11k/year increase in taxes if you were filing as single with a $550k income, though, which might be the issue.


No, the amounts provided were correct. If I toggle to single then the loss is more than double what I said before. The issue is that you're making reasonable assumptions about the property taxes in an unreasonably expensive city.

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Sat Jan 06, 2018 3:31 pm

Using the above tax calculator. A single person earning $150k a year would benefit [annually] by $3,983. $331 per month. However, if you live in a high SALT state, deduct (roughly) $100 monthly

Another method, same scenario; Income currently taxed at 28%. New tax rate, 24%. Net Income Difference is $500 per month. This is [likely] why $500 a month is a top pick in this poll.

Lesion of Doom

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Re: Projected Difference in Monthly Net Pay

Postby Lesion of Doom » Mon Jan 08, 2018 6:54 pm

Anonymous User wrote:I work in non-Federal government and make $55k-60k a year, and I'm projected to save ~$1400... a year. Although I'm in a really weird place with my taxes since I own my place and get a few thousand in rental income from a roommate, but due to itemizing and depreciating my home value I end up with a >$2.5k refund every year.


Are you claiming the roommate's rent as income? I was under the impression you need not do that, provided that's your primary residence.

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Tue Jan 16, 2018 1:48 pm

Just occurred to me that my upcoming paycheck will be based on Jan income. Thus, will not be able to tell how much extra $ I will be receiving (from the new tax alignment) until mid-Feb. Hoping for 500 extra for the month.

PorscheFanatic

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Re: Projected Difference in Monthly Net Pay

Postby PorscheFanatic » Tue Jan 16, 2018 4:23 pm

Anonymous User wrote:Just occurred to me that my upcoming paycheck will be based on Jan income. Thus, will not be able to tell how much extra $ I will be receiving (from the new tax alignment) until mid-Feb. Hoping for 500 extra for the month.


Why isn't January income subject to the new tax plan? I thought everything went into effect on January 1?

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Thu Jan 18, 2018 2:05 pm

I saw on TV last night that the tax cuts begin in Feb… you should see more money in your Feb 15th check.

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Desert Fox

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Re: Projected Difference in Monthly Net Pay

Postby Desert Fox » Thu Jan 18, 2018 2:13 pm

The tax cuts/raises apply to January income, but the withholding tables don't change until Feb.

But the withholding amount is a poor estimate of how much your taxes will go up or down. Withholding doesn't count non-standard deductions that were lost. Your take home pay may go up, but then you'll have to pay it all back and more when you can't fully deduct SALT.

But I still find it hard to believe anyone but snr associates and partners are actually having their taxes go up.
Last edited by Desert Fox on Fri Jan 26, 2018 11:18 pm, edited 1 time in total.

albanach

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Re: Projected Difference in Monthly Net Pay

Postby albanach » Thu Jan 18, 2018 2:15 pm

PorscheFanatic wrote:
Anonymous User wrote:Just occurred to me that my upcoming paycheck will be based on Jan income. Thus, will not be able to tell how much extra $ I will be receiving (from the new tax alignment) until mid-Feb. Hoping for 500 extra for the month.


Why isn't January income subject to the new tax plan? I thought everything went into effect on January 1?


The law is effective for the tax year. Your HR department still has to implement it. And for them to do so, they needed guidance from the IRS, who only learned of the new rules at the same time as we did.

The IRS have issued new withholding tables, but employers have until Feb 15 to implement them.

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Fri Jan 19, 2018 2:07 am

Desert Fox wrote:The tax cuts/raises apply to January income, but the withholding tables don't change until Feb.

But the withholding amount is a poor estimate of how much your taxes will go up or down. Withholding doesn't count non-standard deductions that were lost. Your take home pay may go up, but then you'll have to pay it all back and more when you can't fully deduct SALT.

That's mainly a problem for those who live in the "sock-it-to-you" states.

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Fri Jan 19, 2018 11:02 am

Anonymous User wrote:I work in non-Federal government and make $55k-60k a year, and I'm projected to save ~$1400... a year. Although I'm in a really weird place with my taxes since I own my place and get a few thousand in rental income from a roommate, but due to itemizing and depreciating my home value I end up with a >$2.5k refund every year. After playing around with these tax calculators and running through scenarios in my head, as a practical matter I think this tax bill will do what I had been meaning to do myself and adjust my withholdings to give me an extra ~$80 a paycheck but also mostly wipe out my tax refund.

All that said, at my level of income an extra $80 a paycheck makes a difference, but I'm bad at saving money so I'll miss that huge income boost once a year.

Just got my first paycheck with the new taxes accounted for, and like I estimated I got about ~$75 more (net). So...yay, except I feel like it's dirty money because RIP Social Security/etc. Oh well.

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Sat Jan 20, 2018 1:40 am

Anonymous User wrote:
BenJ wrote:http://taxplancalculator.com/


Junior big law partner in NYC. This shows my taxes going up by about $1,000 per month.


this link says i'm going to save 15k in 2018

Edit: Midlevel, VA, married, 1 child.

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Sat Jan 20, 2018 5:44 am

NYC midlevel, filing single, only deductions are SALT. Worked through the law and I’m worse off a little under 100 per month.

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Re: Projected Difference in Monthly Net Pay

Postby Anonymous User » Wed Feb 14, 2018 12:56 pm

I just received my first paycheck under the new tax plan. I netted $241 more than my last check. Looks to be around $500 a month more (which is what I guessed). Anyone else received their check yet?



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