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Posted by Dick Adams on November 14, 2006, 8:28 pm
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It's been 40 months since my first surgery and I really want
to go back to work. My pain is bearable with help from
ocassional pain killers. I just can't walk a quarter mile,
walk on uneven ground, or climb stairs with style and grace.
Make the following aassumptions:
- My gross SS income is $25K;
- Susan's income is 50K; and
- Maryland tax rate is 7.95%.
Ignoring the personal costs of going to work, what is the
break-even gross income I need to replace the $25K? I can
figure the rest out.
My off-the-wall guess is the first $46K is replacement
income.
Dick
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Posted by GOBLUE on November 17, 2006, 11:11 pm
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Dick Adams wrote:
> It's been 40 months since my first surgery and I really want
> to go back to work. My pain is bearable with help from
> ocassional pain killers. I just can't walk a quarter mile,
> walk on uneven ground, or climb stairs with style and grace.
>
> Make the following aassumptions:
> - My gross SS income is $25K;
> - Susan's income is 50K; and
> - Maryland tax rate is 7.95%.
>
> Ignoring the personal costs of going to work, what is the
> break-even gross income I need to replace the $25K? I can
> figure the rest out.
>
> My off-the-wall guess is the first $46K is replacement
> income.
Maybe you need some more Jack Daniels "Special Blend" to
speed the healing process:)
Best regards,
Jim Hayden EA - Grand Rapids, MI
Moderator:
Actually it was Jack Daniels Single Barrel. It was so
good that I often took it out in an eye dropper so it
would last longer. You have a two liters of Mead coming
from me. I just have not made anything good enough yet
to send you.
Run some numbers and give me an idea of a replacement
salary. I do not live far from the Social Security
Administration and with my professional credentals, they
damn well should hire me to get me off disability. I'll
have to tell them that I have to take pain killers during
the day.
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Bill on November 18, 2006, 11:48 pm
Please log in for more thread options Dick Adams wrote (in response to a reply):
> [OP and reply edited for brevity]
> It's been 40 months since my first surgery and
> I really want to go back to work. My pain is
> bearable with help from ocassional pain
> killers. I just can't walk a quarter mile, walk on
> uneven ground, or climb stairs with style and
> grace.
>
> Make the following aassumptions:
> - My gross SS income is $25K;
> - Susan's income is 50K; and
> - Maryland tax rate is 7.95%.
>
> Ignoring the personal costs of going to work,
> what is the break-even gross income I need to
> replace the $25K?
>
> Moderator:
> >un some numbers and give me an idea of
> a replacement salary. I do not live far from the
> Social Security Administration and with my
> professional credentals, they damn well
> should hire me to get me off disability.
Dick: Having been a MD resident for 17 years -- ending
about 17 years ago with a move to FL -- I was intrigued by
your quote of 7.95% for the MD tax rate. In my day, the
"state" rate was 5% (technically, only after the first $4K).
But that was just the beginning, because your _county_ then
added on -- frequently at 50% of the state rate. So, in
Montgomery County, where I lived, the total tax came to
7.5%. How on earth did that convert to _7.95_? (Just
simple curiosity.)
[Also, having driven around 695 and often joined it from
I-70 as a convenient route from Montgomery County, heading
for friends or relatives in Southeastern PA, I'm very
familiar with the intersection of I-70 into I-695, with the
easy "mistake" of keeping left too long, and discovering
you're on "Social Security" Blvd. Is that your general
neighborhood?]
As to your question, my limited offer is to point out that
your $25K from SS is already 85% taxed, under federal rules
(and my recollection is the AGI was transferred directly
onto the MD forms) ... so except for that 15% differential,
your "replacement" requirements would not be substantially
different (17.65% above current would equal the 15%
"tax-free" -- only requiring $29,400 to balance the gross
income). Therefore, your principal "break-even"
considerations should be the _expense of working_.
Clothing, transport, purchased lunch, etc. will add up to a
lot more than that $4,400.
Bill
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by ed on November 18, 2006, 11:48 pm
Please log in for more thread options Dick Adams wrote:
> It's been 40 months since my first surgery and I really want
> to go back to work. My pain is bearable with help from
> ocassional pain killers. I just can't walk a quarter mile,
> walk on uneven ground, or climb stairs with style and grace.
>
> Make the following aassumptions:
> - My gross SS income is $25K;
> - Susan's income is 50K; and
> - Maryland tax rate is 7.95%.
>
> Ignoring the personal costs of going to work, what is the
> break-even gross income I need to replace the $25K? I can
> figure the rest out.
>
> My off-the-wall guess is the first $46K is replacement
> income.
>
> Dick
Dick, it's $29,620 taking into consideration taxation of
current SS benefits, SS tax on your new salary, no children,
no itemizing, not over age 65, and 2006 rates.
Ed
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Stuart A. Bronstein on November 19, 2006, 9:54 pm
Please log in for more thread options > Dick Adams wrote:
>> Make the following aassumptions:
>> - My gross SS income is $25K;
>> - Susan's income is 50K; and
>> - Maryland tax rate is 7.95%.
>>
>> Ignoring the personal costs of going to work, what is the
>> break-even gross income I need to replace the $25K? I can
>> figure the rest out.
> Dick, it's $29,620 taking into consideration taxation of
> current SS benefits, SS tax on your new salary, no children,
> no itemizing, not over age 65, and 2006 rates.
That's the amount taking into consideration only the
Maryland tax. It doesn't take into consideration the
additional tax on the joint return. I believe the marginal
rate for both $75,000 and $50,000 is 25%.
Assuming that's all correct, the figure would be $37,285, or
just a bit less if the state tax is deductible.
Of course, that's still just an estimate based on those as
final taxable figures.
Stu
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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