Few Questions/ SA/ 1st Year Forum

[Anonymous User]

What is the take-home pay for the summer? If that's our only earning, what are taxes like? Also should that money be used to payoff loans right away, if we have no other financial responsibilities?

Also when is the typical star date after 3L for full-time job? Is there time for traveling?

Thanks!

[Anonymous User]

+1 Also interested in this! Do we still get taxed at the same rate we'd be taxed at if we made 180k? so 30%ish?

[SFSpartan]

All of this can be answered with use of the search feature. There are literally dozens of threads about all of these questions.

To answer your tax questions - you get withheld as if you're making $180k, so you'll get a big ass refund (you'll also probably get audited).

Typical start date is sometime between September and November after you take the Bar exam. You'll have plenty of time to travel, OP (in fact, most of my friends were running out of money by the end).

[TEIAM]

You will select your withholdings (w4) prior to starting your summer. Technically, you could mess with your withholdings to try to find the exact spot you will need to pay in for tax year 2018. Doing this could be risky because if you underestimate, you could owe a substantial sum next April.

Assuming you elect for normal withholdings, expect to see between $9,000-$10,000 a month, depending on where you are summering. Also note that with normal withholdings, you will get a sweet return next year.

As for start date, it varies wildly between firms. I have seen as early as September and as late as December. Reach out to allums that are at your firm and they should be able to give you an idea of when you should expect to start.

[Anonymous User]

Just as a point, I did normal withholdings and got over a 6k refund check

[BasilHallward]

Just as a point, I did normal withholdings and got over a 6k refund check

I increased allowances to the 20–24 range and ended up owing about $200 in April. I got the interest-free loan. Most people like the huge refund, but you're objectively losing money. Whether it's a good call on your behalf is a different question. Maybe you take the "extra" money during the summer and buy a bunch of watches. Maybe not a good idea, and thus smarter to get the huge refund later.