By my estimation and IRS calculator, his tax liability is probably under 20%. Probably. This assumes about 15% is being taken out for healthcare and retirement however, so yeah, the net paycheck will be approximately 30-40% lower than gross.
I’d estimate OP has $440 a month left over after all the list expenses.
No one is paying 40% total tax rate unless they are single, make $350,000+, and live in a high tax area (NYC, San Francisco). If you are married, you have to make at least $800,000 to pay 40% overall.
Look through the thread and you will see people showing their work and coming up with similar numbers. 40% was a rough estimate off the top of my head. Figures from a recent paystub of mine: gross income of $2700.80, net income of $1774.41. My deductions are more than just taxes, but regardless that is an effective reduction in pay of %35.31. This is a real life figure that the others may be similarly subjected to, as opposed to the numbers you get out of a calculator.
100 hours of work if the money is tax free (it’s not). Taxes take about 40% of your gross income so on $23/hr hr can’t afford the listed bills.
By my estimation and IRS calculator, his tax liability is probably under 20%. Probably. This assumes about 15% is being taken out for healthcare and retirement however, so yeah, the net paycheck will be approximately 30-40% lower than gross.
I’d estimate OP has $440 a month left over after all the list expenses.
$440 per month to pay for gas, utilities, phone bill, insurance, incidentals, etc. You can forget about savings completely.
I don’t think OP is too far off the mark.
Use this tax calculator; it includes FICA, state taxes, and local taxes:
https://smartasset.com/taxes/income-taxes
No one is paying 40% total tax rate unless they are single, make $350,000+, and live in a high tax area (NYC, San Francisco). If you are married, you have to make at least $800,000 to pay 40% overall.
Nowhere in the USA will you be taxed 40% of your income, I’m amazed such a blatantly obvious statement is being so heavily upvoted
Look through the thread and you will see people showing their work and coming up with similar numbers. 40% was a rough estimate off the top of my head. Figures from a recent paystub of mine: gross income of $2700.80, net income of $1774.41. My deductions are more than just taxes, but regardless that is an effective reduction in pay of %35.31. This is a real life figure that the others may be similarly subjected to, as opposed to the numbers you get out of a calculator.