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Regarding the new Republican tax formula that will be enacted in Feb of ’18. This is an exercise in guessing how much larger your monthly net take-home pay will be in February compared to your net January take-home pay.

It depends on class year and married /single and location. As discussed in the other thread single biglawyers will probably be paying more in taxes across the board.

Can someone provide me with the formula so that I can perform the calculation to project the difference in my monthly net pay?

kellyfrost wrote:Can someone provide me with the formula so that I can perform the calculation to project the difference in my monthly net pay?

Too many variables. Single or married? Kids? How much do you pay in state and city tax? Do you pay interest on a mortgage? There was a link to a couple of calculators in the thread on how the tax legislation will affect associate salaries.

Anonymous User wrote:Regarding the new Republican tax formula that will be enacted in Feb of ’18. This is an exercise in guessing how much larger your monthly net take-home pay will be in February compared to your net January take-home pay.

You need to have options in the other direction for a lot of lawyers on this board.

Maybe this belongs in the out of touch with the common man thread, but do people here generally know their monthly take home? I don’t think I could guess within $500.

Johann wrote:It depends on class year and married /single and location. As discussed in the other thread single biglawyers will probably be paying more in taxes across the board.

I’m a first year. Single, no kids. WSJ, CNN, and NYT calculators all say my take home will go up slightly. Are they all missing something? Individually any one of them could be inaccurate, but they’re fairly precise relative to one another. Are they just dumb/wrong?

cron1834 wrote:

Johann wrote:It depends on class year and married /single and location. As discussed in the other thread single biglawyers will probably be paying more in taxes across the board.

I’m a first year. Single, no kids. WSJ, CNN, and NYT calculators all say my take home will go up slightly. Are they all missing something? Individually any one of them could be inaccurate, but they’re fairly precise relative to one another. Are they just dumb/wrong?

My taxes are going down as a married person, which I checked with my own math and calc. When I first glanced, I thought everyone would be getting a tax break. But in the other thread someone said their associate taxes would be going up and then I looked at the new rates and noticed a pretty big gap in the 24/28/32 bracket. Every dollar earned from 156k to 196k and 200k to 415kish will be taxed at a higher rate under the new plan than the old plan.

When you factor in the standard deduction increase, I assume some of this offset but under the old way if you were in nyc you’d prolly be getting healthy SALT deductions which no longer exist. The analysis is also sensitive to maxing out 401k etc.

My projected SALT hit is roughly the same as the new standard deduction. So, hopefully I won't get railed too hard by not itemizing.

cron1834 wrote:

Johann wrote:It depends on class year and married /single and location. As discussed in the other thread single biglawyers will probably be paying more in taxes across the board.

I’m a first year. Single, no kids. WSJ, CNN, and NYT calculators all say my take home will go up slightly. Are they all missing something? Individually any one of them could be inaccurate, but they’re fairly precise relative to one another. Are they just dumb/wrong?

They're just estimating the average result nationally for a big range of incomes. In NYC, nearly all single associates will see their taxes go up. First-years get a small cut but will be an increase for single second years and above. Better calculator is below, though it does not account for AMT, which is significant for midlevel/senior associates (and makes the hikes less severe than they otherwise look to be on this calculator).

http://taxplancalculator.com/

cron1834 wrote:My projected SALT hit is roughly the same as the new standard deduction. So, hopefully I won't get railed too hard by not itemizing.

Recall that you lose your personal exemption also. The "increased" standard deduction is not really much of an increase at all, other than for people in/above the phase-out zone for the personal exemption (which includes senior associates but not juniors).

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

cfcm wrote:Maybe this belongs in the out of touch with the common man thread, but do people here generally know their monthly take home? I don’t think I could guess within $500.

i know mine within like $100 because rent comes out of one bi-monthly check and student loans come out of the other. fairly big difference in what i can save/spend from a mid-month paycheck vs an end of month paycheck

well, i guess more accurately know it before and then a few weeks after hitting the social security withholding max for a year. definitely was surprised after hitting that and had no idea that it existed until this year.

second-year, though. could easily see forgetting once reaching midlevel/senior associate status.

BenJ wrote:

cron1834 wrote:

Johann wrote:It depends on class year and married /single and location. As discussed in the other thread single biglawyers will probably be paying more in taxes across the board.

I’m a first year. Single, no kids. WSJ, CNN, and NYT calculators all say my take home will go up slightly. Are they all missing something? Individually any one of them could be inaccurate, but they’re fairly precise relative to one another. Are they just dumb/wrong?

They're just estimating the average result nationally for a big range of incomes. In NYC, nearly all single associates will see their taxes go up. First-years get a small cut but will be an increase for single second years and above. Better calculator is below, though it does not account for AMT, which is significant for midlevel/senior associates (and makes the hikes less severe than they otherwise look to be on this calculator).

http://taxplancalculator.com/

cron1834 wrote:My projected SALT hit is roughly the same as the new standard deduction. So, hopefully I won't get railed too hard by not itemizing.

Recall that you lose your personal exemption also. The "increased" standard deduction is not really much of an increase at all, other than for people in/above the phase-out zone for the personal exemption (which includes senior associates but not juniors).

That site suggests that I will save $4 grand

As I understand it, starting in February the gov’t will do their “tax-cut” thing and we will see more money in our paychecks. It’s that simple…. right?

Anonymous User wrote:As I understand it, starting in February the gov’t will do their “tax-cut” thing and we will see more money in our paychecks. It’s that simple…. right?

Right, the tax cut starts in 2018 but the new withholding rules won't take effect until February.

BenJ wrote:http://taxplancalculator.com/

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

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.

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.

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?

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.

kellyfrost wrote:Can someone provide me with the formula so that I can perform the calculation to project the difference in my monthly net pay?

Anyone have any luck locating a link with this formula?

Anonymous User wrote:

kellyfrost wrote:Can someone provide me with the formula so that I can perform the calculation to project the difference in my monthly net pay?

Anyone have any luck locating a link with this formula?

its in the thread ffs

There is a link to tax reform but there is no link above estimating the difference in how much extra I will be taking home, come February. Does such a link even exist?

Can you not actually calculate how the amount you save in taxes over a year will affect your take-home pay? (see http://taxplancalculator.com/, the link cited already)

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.