<p>OK, an analyst straight from college can manage a 60k base + 10k golden handcuffs + 20-50k bonus = ~90-120k first year all-in. </p>
<p>This, to my understanding, is all pre-tax. What I'd like to know is how much you actually get in your pockets from this ~100k that you make? Subtracting all the compulsory taxes and fees, how much spendable money do you end up with?</p>
<p>And how do taxes affect your summer internship pay?</p>
<p>I'm trying to figure out how big a portion of college costs I could fund with loans and summer jobs.</p>
<p>If you expect to be an IB, I would think you could figure out/already know how to compute tax rates. You can google federal/state tax rates easily and add in Soc Sec, NY city tax, and a possible deduction for medical insurance co-payment. Subtract any exemptions and deduductions and you have your after tax income/</p>
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If you expect to be an IB, I would think you could figure out/already know how to compute tax rates.
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<p>That's exactly what I was going to say ;-). Seriously, if you want to be an analyst then you can figure this out yourself quite easily (don't forget, NYC residents are hit with a ~3% income tax on top of normal federal and state income tax). Also, take home depends a lot on your personal situation... details that only you'll know. </p>
<p>If you rent then you're take home will be less than if you own since home owners get a lot of tax breaks that renters do not so that can be a few k fluctuation just for that alone. </p>
<p>Be an analyst... find out the facts and then apply them to your numbers. Oh, and don't include any bonus as part of your expected salary in your calculations. A bonus should be just that, a bonus... if you get a nice on then great but you need to be able to function financially without it.</p>
<p>If each month you only get your base salary, then you only take home what, about 3k/mo? Do analysts really have any spending money before getting their bonus, considering that they're paying over 2k/mo for NYC rent & food?</p>
<p>to rocketman08 and marine1300,</p>
<p>I'm an international with no knowledge at all of the US tax system. I could spend hours trying to figure out all the extra tax rates and deductions and tax breaks and allowances etc. and then end up with a figure that I'd still be somewhat unsure of. On the other hand, I could just ask it here, from people who have actually worked in NYC and can just give me a rough estimate, which is all I need at this point.</p>
<p>I would agree with nauru about take home of ~ $54-55K out of a $100K salary. </p>
<p>You will have spending money from just the base salary, but is difficult to accumulate much in the way of savings until the bonus comes around. You can pay less than $2,000 a month in rent if you have two or three roommates. Considering that you will be working late most nights (where there is a per diem allowance), you don't end up paying for food that much.</p>
<p>Also, for planning after year 1 don't forget that once you start earning ~100k or more a year there's a very good chance you'll start running into the Alternative Minimum Tax (AMT) tax system. This is the antiquated totally separate tax system that often really hits people hard (eg someone thinks they're going to get a $2,000 tax refund and finds out they actually OWE the IRS $3,000). In this system, you're taxed at 26-28% on earnings (starting with the first dollar of your AGI, unlike the scaled normal tax system) and you're not allowed many of the deductions that the normal tax system has. You get a much larger standard deduction, but even with that many people end up owing much more than they do under the 'normal' tax system... you're required to calculate your taxes using both the AMT and normal system and pay whichever amount is higher.</p>
<p>Probably not an issue for the first year or so, but down the line you'll need to watch out for it. Ideally Congress will scrap the whole system (which was setup ages ago, but never adjusted for inflation... so was ment to go after the very rich and now hits the upper middle class).</p>