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Hi there

I've been offered a job in NYC and am trying to work out what my pay check would look like after tax. Assume I don't need to make any healthcare or 401k contributions, and my salary is $80,000. I'll also bring my spouse, and we will file our tax returns jointly. Assume for now her salary is $0.

My calculations look like this:

NYS Income Tax
Income [$80,000] - Deduction [$16,050] = Taxable Income $63,950
$2,092.90 + (6.45% over $43,000)
$63,950-$43,000 = $20,950.
6.45% x $20,950 = $1,351.28
$2,092.90 + $1,351.28
= $3,444.18

NYC Income Tax
Taxable Income = $80,000 [No Deduction]
$1,545 + (3.819% over $45,000)
$80,000 - $45,000 = $35,000
3.819% x $35,0000 = $1,336.65
$1,545 + $1,336.65
= $2,881.65

Federal Income Tax
Income [$80,000] - Deduction [$24,000] = Taxable Income $56,000
$1,905 + (12% over $19,050)
$56,000 - $19,050 = $36,950
12% x $36,950 = $4,434
$1,905 + 4,434
= $6,339

FICA Tax
Income $80,000
Social Security Tax [6.45%] + Medicare Tax [1.45%] = 7.65%
7.65% x $80,000
= $6,120

Total Taxes = $18,784.83
Tax Rate = 23.48%

Net Income = $61,215.18
Monthly = $5,101.26


Do these figures look roughly correct? Any help or advice in any mistakes or misunderstanding of the US tax system would be much appreciated!

Thanks all!
 

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Why do you say you won't need to make any healthcare deduction? At least you should check the terms of your employer's health insurance. It used to be standard that the employer paid for health insurance, but these days I am told that the employee "usually" pays at least a portion of the monthly premium.

On the NY state tax, just be aware that you're subject to state taxes in both the state in which you live and the state in which you work. It's pretty common in the NYC area for folks working in NYC to live in NJ or Connecticut, so if that's what you decide to do, you could wind up with two sets of state income taxes. Like international taxes, there are mechanisms to avoid double taxation, but there can be some overlap depending on the specific states involved and how they calculate the "adjustment."
Cheers,
Bev
 
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