$2600 a month - residency net pay is this accurate?

[alison]

We pay Federal but get a check from state. We started paying as soon as we went to two incomes. We both claim 1 and don't have any kids or a house. We also do charitable donations every year and write stuff off for DH's medical stuff (books, exams, etc.).

For those planning a move to NYC, don't forget that aside from a hefty state tax, there's also a hefty city tax. :>

Same with Chicago. We have a high city tax. And every sticker fee imaginable to have a car.

It would be interesting to know how allowances most take and how it works out for you at the end of the year with taxes. If you take maximum alloted allowances do you still pay at the end of the year?

Yes.

being nosy here, but how much... don't answer if you want

[Vishenka69]

Same with Chicago. We have a high city tax. And every sticker fee imaginable to have a car.

What do you mean? There's a car tax in Chicago?

Julie, when we claimed the higher witholding for a married couple we generally got a little bit of money back (under 1k); with the lower withholding we paid a little (under 1k).

Now our taxes are completely screwy due to self-employment income and we generally pay several thousand each April. Try to stay focused on the positive - - paying taxes, means you are making money.

Here are several ways to reduce your tax burden:
1) if your income is under a certain amount you can write off your student loan interest - - this requires you to pay your interest (you can make an interest only payment) and that prevents it from capitalizing into (i.e., increasing) the loan. At least try to pay the interest up to the max deduction for student loan interest.

2) 403/401k: This often is not affordable for residents but we have always contributed and its saved us tons in tax dollars. If you had limited funds, as is typical for residency, I would put money in Roth IRAs each year; any extra in a 403/401

3) You can deduct your moving expenses

4) Keep track of and deduct charitable expenses - - this only works if you are over the standard deduction amount, allowing you to itemize. You will be over the standard deduction amount if one of you is a high income earner or if you buy a home (though between roth contribution and home buying, I would go with the roth contribution, no question).

[alison]

I didn't mean a vehicle tax, but rather the so-called "Chicago sticker" that each car has to have in its windshield. I have no idea what it's for, only that it costs $75 and they'll GO INTO PRIVATE GARAGES to make sure you have one. Then the yearly license renewal fees.

Thanks for the tips!

[Vishenka69]

I didn't mean a vehicle tax, but rather the so-called "Chicago sticker" that each car has to have in its windshield. I have no idea what it's for, only that it costs $75 and they'll GO INTO PRIVATE GARAGES to make sure you have one. Then the yearly license renewal fees.

I have never heard of a city sticker like that. So weird. We only have registration and inspection stickers. For those planning on buying/keeping a car in NY, Manhattan has the cheapest insurance out of all boroughs, so try to register you car there.

[DCJenn]

DC also has a boatload of fees- parking sticker, registration, inspection. Texas they get you in property tax instead of income tax. I think we'll pay more in property tax next December than we would have in income tax in DC.

Jenn

[hanginginthere]

Year 5 was $2900...we pay a lot in insurance and taxes so we get decent returns each year- this "savings" is what we dip into for the "extras" like car repairs...We are waiting on year 6's raise to take effect....we don't have co-pays through his hospital...and our mortgage is $900 but it is still tight...

[SoonerTexan]

I know this is old but holy crap this is scary. Lalalalal I'm not listening!!!

I hope I can work part time in residency like I want to.

[SuzySunshine]

I think as a PGY8 DH was paid $3600 although that was less as a fellow then he would have made as a PGY8 at his residency institution.

[scrub-jay]

I know this is old but holy crap this is scary. Lalalalal I'm not listening!!!

I hope I can work part time in residency like I want to.

Remember, many of these numbers were from 2007, so things are probably a smidge higher. And maybe you can have babies for free!!

[Thirteen]

The baby was free, like SJ said. However, at the close of residency, we were netting approx. 2800 a month. NOT enough to live off of in LA.

[corn poffi]

And it really is location-specific. We were shocked when we found how little residents got paid at the programs he was interested in Chicago. Especially when we found out how much more they get paid here! It's actually a decent salary (until you break it down hourly...never ever do that) compared to others, but especially compared to our COL, which is quite a bit less than Chicago!

[niener]

Remember, many of these numbers were from 2007, so things are probably a smidge higher. And maybe you can have babies for free!!

We were really, really struggling on his income alone last year (PGY1) for the first couple of months when I didn't have a job, but we had lots of bad luck financially. Still, life happens ya know, and when that stuff comes along you have to deal with it. But yes on the free babies!!