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Take Home Pay, NYC

Take Home Pay, NYC

Old Sep 15th 2011, 11:32 pm
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Default Take Home Pay, NYC

Hi Guys,

What a great forum this is.
I successfully attained a H1B Visa and am moving to Bay Ridge, Brooklyn in the next couple of weeks.

I'm trying to get my head around the whole 'tax' thing. It's such a confusing system. I've used many of the calculators online and they roughly come out with the same number, but I'm wondering if anyone on here that's a little more tax-nyc-american-savvy could help.

I will be on $32,500 a year. I am paid semi-monthly. I will be paying $100 a month for health-care. I am a single person, filing on my own.
My pre-tax pay per period is $1354. Most calculators estimate my post-tax take-home pay to be approximately $1000. Is this accurate? Please help, I'm a little confused!

Thanks,
Ben
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Old Sep 15th 2011, 11:39 pm
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Default Re: Take Home Pay, NYC

Sounds about right, did you even find anywhere to live with so little money? NYC is so expensive.
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Old Sep 15th 2011, 11:41 pm
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Default Re: Take Home Pay, NYC

Probably about right. $32k won't be much to live on in Brooklyn.

Is the health taken off pre-tax?

Make sure you are including all levels of taxation, Federal, NY state and NY City.
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Old Sep 15th 2011, 11:46 pm
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Default Re: Take Home Pay, NYC

Originally Posted by sir_eccles
Probably about right. $32k won't be much to live on in Brooklyn.

Is the health taken off pre-tax?

Make sure you are including all levels of taxation, Federal, NY state and NY City.
I know it's not a great deal of money, but I'm young, and am looking for an experience at the moment, rather than a different life. I'm housesharing with some friends, so rent isn't as bad as it could be. Certainly very expensive though!
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Old Sep 16th 2011, 12:34 am
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Default Re: Take Home Pay, NYC

That sounds about right for income tax but you will have to pay FICA tax (social security and medicare). This year that is 5.65% of your income up to $110,000 in income but if congress passes Obama's stimulus package, that will go down further. In normal years, the percentage is 7.65%. I think you can opt out of FICA tax for up to 5 years if you want to continue to pay those types of taxes in the UK (probably your employer doesn't want to get involved with such complexities).

Also since you are starting work near the end of the year, you probably won't be paying any federal income tax for this year since you will likely be filing taxes as a non resident (form 1040NR). Therefore when filling out your W-4 (estimated withholdings) for federal income tax, enter a large number of allowances and then change the form to the correct number of allowances at the beginning of the year since that year you will be filing as a resident (form 1040 or 1040EZ). All of that is totally legal since the government only wants to withhold the correct amount of taxes (within $1,000) that they will be owed at the end of the year.

In the US, everybody that earns above a certain amount of income is required to file a tax return by April 15th to settle the differences owed by them to the government or the government owes them a refund. Because of the way US tax law is written, there is no way to determine ahead of time the exact amount of taxes that will be owed by households.

Last edited by Michael; Sep 16th 2011 at 12:41 am.
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Old Sep 16th 2011, 1:14 am
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Default Re: Take Home Pay, NYC

Originally Posted by Mummy in the foothills
Sounds about right, did you even find anywhere to live with so little money? NYC is so expensive.
That's what I was wondering...what kind of specialist skill is worth so little?

But if it works for the OP, good luck to him, certainly be an adventure!

I couldn't do a grotty flatshare though, mate of mine was paying $400 a month, sharing with 6 blokes, in 4 rooms, when I visited him, it was minging

Other thing to consider, how much if anything is being taken out for any pension scheme such as a 401K? That'll lower the potential tax burden, but by the same token leave even less in the purse and also if there's any co-pay and deductibles etc on the medical insurance, make sure there's enough cash set aside to pay that in case you need to see a doctor.
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Old Sep 16th 2011, 4:58 am
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Default Re: Take Home Pay, NYC

Don't forget about the money for your metrocard to commute to work. You should see if your company offers transit check.
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Old Sep 16th 2011, 5:01 am
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Default Re: Take Home Pay, NYC

Originally Posted by tubbstep
I know it's not a great deal of money, but I'm young, and am looking for an experience at the moment, rather than a different life. I'm housesharing with some friends, so rent isn't as bad as it could be. Certainly very expensive though!
If you hang around the bins by the back door of pizza joints when they're closing, you may even get to eat occasionally.
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Old Sep 16th 2011, 4:47 pm
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Default Re: Take Home Pay, NYC

There are plenty of people in NYC living on salary's below what the OP has mentioned . Rents have come down quite a bit and if they are sharing an apartment with several roomates they probably will be ok. I'm a native New Yorker and there are deals to be had. $100 for health insurance is fantastic. There is a pizza place by me that sells pizza for 99 cents a slice and $7.99 for a large pie and it's really good actually! My friends daughter is sharing a nice two bedroom in Queens for $1400 with three other girls and it's a renovated spacious apartment. There are plenty of deals to be had in NYC believe it or not. They will be sharing utilities as well.
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Old Sep 16th 2011, 5:02 pm
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Default Re: Take Home Pay, NYC

Originally Posted by penguinbar
There are plenty of people in NYC living on salary's below what the OP has mentioned . Rents have come down quite a bit and if they are sharing an apartment with several roomates they probably will be ok. I'm a native New Yorker and there are deals to be had. $100 for health insurance is fantastic. There is a pizza place by me that sells pizza for 99 cents a slice and $7.99 for a large pie and it's really good actually! My friends daughter is sharing a nice two bedroom in Queens for $1400 with three other girls and it's a renovated spacious apartment. There are plenty of deals to be had in NYC believe it or not. They will be sharing utilities as well.
No-one is saying it's impossible, I think we are just cautioning that it may be the case that the OP has nothing left at the end of the month. It won't be like the glamorous as-seen-on-tv experience.

I used to live in Brooklyn.
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Old Sep 16th 2011, 5:09 pm
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Default Re: Take Home Pay, NYC

[QUOTE=sir_eccles;9625445]No-one is saying it's impossible, I think we are just cautioning that it may be the case that the OP has nothing left at the end of the month. It won't be like the glamorous as-seen-on-tv experience.

I used to live in Brooklyn.[/QUOTE


I agree it won't be glamorous but I think it's a great opportunity.
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Old Sep 16th 2011, 5:29 pm
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Default Re: Take Home Pay, NYC

Originally Posted by sir_eccles
No-one is saying it's impossible, I think we are just cautioning that it may be the case that the OP has nothing left at the end of the month. It won't be like the glamorous as-seen-on-tv experience.

I used to live in Brooklyn.
With the added cost of moving back, especially if things don't work out.

If you're young and single, it'll be a blast and a great opportunity, but some considerations still need to be thought about
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Old Sep 16th 2011, 5:52 pm
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Default Re: Take Home Pay, NYC

I keep coming back to one thing - 32K for specialist skills for H1B. That's amazing.

I am sure though, it will be an experience for OP.
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Old Sep 18th 2011, 9:34 pm
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Default Re: Take Home Pay, NYC

Originally Posted by E3only
I keep coming back to one thing - 32K for specialist skills for H1B. That's amazing.

I am sure though, it will be an experience for OP.
I'm just out of University and a trained Music teacher.
The reason that I got the job was because there is a British Brass Band program, of which I am specialised in, and their main focus for the job was to improve the band.

The reason that I am not quibbling the salary as it is exactly the same starting salary that I started on in the UK for my field. Granted, the cost of living is lower where I was working, but still, it's exciting.
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Old Sep 18th 2011, 10:07 pm
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Default Re: Take Home Pay, NYC

OK, so is this an academic H1-B then?

That would explain the fairly low salary.
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