by Deathandtaxes » Fri Feb 02, 2018 5:41 pm
Concerned wrote:Guest 123. If I used the ES form it estimates around $4000.
We are not self employed so we don't owe social security or medicare as our stipend isn't considered for work. If that's the case it means we are taxed at 10% for the first 10,000 and 15% for the rest. Then state taxes are taken out on top of that right?
Is that $4000 the estimate considering both federal and state taxes? $4000 seems about right for just federal, but is very low if it is both. $8000 sounds a bit high to me, I made about $35000 through SMART last year and my obligation was about $7000 for both state and federal, so ~20%. Perhaps Guest123 needed to file as a dependent or had some other tax situation.
kbl2017 wrote:Also. How the heck do I save 1/3rd when my housing costs almost 1/2 of my income? (In LA so no i cant find cheaper housing.)
"In this world nothing can be said to be certain, except death and taxes."
As I said above for me it has been more like 1/5 for me, so you might not have to worry. I would seriously reconsider your housing situation though. 50% of gross income is severally over what is generally suggested for housing. Current recommendations suggest mortgage payments should be no more than 30%. If you want to be a homeowner one day, rent should be lower because in theory you should be saving the difference towards a down payment.
[quote="Concerned"]Guest 123. If I used the ES form it estimates around $4000.
We are not self employed so we don't owe social security or medicare as our stipend isn't considered for work. If that's the case it means we are taxed at 10% for the first 10,000 and 15% for the rest. Then state taxes are taken out on top of that right?[/quote]
Is that $4000 the estimate considering both federal and state taxes? $4000 seems about right for just federal, but is very low if it is both. $8000 sounds a bit high to me, I made about $35000 through SMART last year and my obligation was about $7000 for both state and federal, so ~20%. Perhaps Guest123 needed to file as a dependent or had some other tax situation.
[quote="kbl2017"]Also. How the heck do I save 1/3rd when my housing costs almost 1/2 of my income? (In LA so no i cant find cheaper housing.)[/quote]
"In this world nothing can be said to be certain, except death and taxes."
As I said above for me it has been more like 1/5 for me, so you might not have to worry. I would seriously reconsider your housing situation though. 50% of gross income is severally over what is generally suggested for housing. Current recommendations suggest mortgage payments should be no more than 30%. If you want to be a homeowner one day, rent should be lower because in theory you should be saving the difference towards a down payment.