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How much is he taking home?

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Money Talk > Taxes

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newguy84
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How much is he taking home?  Reply with quote  

Hello everyone, I have a friend who works for a corporate company and his salary is 70,000 a year. This is before any tax the company takes or any income tax, so basically that is gross. Another friend of mine makes 4500 a month net, this is including income tax and everything. I was just wondering who is making more, I didn't ask anymore questions because I did not want to seem nosy, that is why I did not ask the 70,000 guy because it might seem to personal if I said what is your actual net income that you actually get to keep.
If anyone can break it down to me I thank you in advance.
Post Fri Aug 17, 2007 9:40 pm
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coaster
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That really can't be answered without knowing how many exemptions they've filed, because the $4500 is net of withholding. But just figuring a 25% net effective tax rate, which is probably not too far out of the ballpark unless they've got lots of exemptions, the guy netting $4500 a month would be making a little bit more on a yearly basis.

~Tim~
Post Sat Aug 18, 2007 12:57 am
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efflandt
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One factor we would not know is state income tax which can range from nothing to 11.5% or more. Another factor is whether they contribute to a company sponsored retirement plan (401k, etc.).

For example I am contributing 20% of gross income to my 401k. And I am having more than normal federal tax withheld to cover IRA to Roth IRA conversions. So my after contribution/tax net pay does not include money being socked away for the future.

You could get a rough idea by using tax forms from irs.gov (and your state dept of revenue) using standard deductions.
Post Sat Aug 18, 2007 8:20 am
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newguy84
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Lets just assume the tax exemptions are all equal. I am just talking about take home pay, after the normal tax a corporation would take and the income tax. Lets just assume he has not put any money into his 401k or anything like that yet, would Mr. $ 70,000 gross be making more than Mr. $54000 net at the end of the year?

Last edited by newguy84 on Sat Aug 18, 2007 4:24 pm; edited 1 time in total
Post Sat Aug 18, 2007 4:23 pm
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newguy84
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Oh I forgot to mention that everything about them would also be the same, as in they live in the same state, both single, etc.
Post Sat Aug 18, 2007 4:23 pm
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coaster
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The Federal income tax on an income of $70,000, filing single with one exemption and standard deduction was $11,951 in 2006. The Social Security and Medicare taxes were $5,355. So the net income was $52,694. That's an effective Federal tax rate of 24.7% -- hey I was pretty close on my guestimate, wasn't I? Laughing

~Tim~
Post Sat Aug 18, 2007 5:21 pm
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songteksten32
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i beleive that they shoud take more.
Post Mon Sep 03, 2007 11:30 am
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shaneroof
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Sorry i cant answer becose i dont have any answer on these topic....
Post Wed Sep 03, 2008 11:54 am
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