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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28279
Experience:  Taxes, Immigration, Labor Relations
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How much tax will I pay in NYC?

Resolved Question:

I earn a gross salary of $60,000 in New York City. How much money will I actually get paid each month after all  taxes and other deductions?

Submitted: 10 years ago.
Category: Tax
Expert:  Lev replied 10 years ago.

Thank you for using JustAnswer.

-What is your filing status - married/single? Do you have any dependents? How many allowances do you claim on W-4 form?
-Do you deduct any amount to 401K or health insurance?
-Are you paid weekly/biweekly?

Customer: replied 10 years ago.

Thank you for your prompt response! I start work next month. I will be filing under the married status and I have no dependents. For now I would like you to work under the assumption that I do not deduct any amount to either the 401K or health insurance. My husband can add me onto to his health insurance plan at no cost, so that is what I intend on doing. I will be paid on a bi-weekly basis.

Do let me know if you have any other questions or clarifications. About the allowances claimed on the W-4 form, I am a recent graduate and an international on an H1-B visa and am not as yet very familiar with the W-4 form and what allowances I can claim on it. Please do make a general assumption regarding the claims and if possible state these allowances claimed in the final response. If it should help, I am to be an Information Technology Auditor with one of the Big 4 Accounting firms. Thank you again for your time!

Expert:  Lev replied 10 years ago.

Your salary of $60,000 will be /26 = $2,308 gross bi-weekly paycheck from which all withholding should be taken. As your husband is working your W-4 filing should be married with only one allowance.

* Federal income tax withholding - $252
* Social Security Tax - $143
* Medicare Tax - $33
* New York State Tax withholding - $122
* NY SDI - $1.2
* New York City Tax withholding - $72
* Net pay would be $1684

Here is W-4 form (including instructions) - http://www.irs.gov/pub/irs-pdf/fw4.pdf the more allowances you take - less taxes would be withheld, but you are also risking to owe more taxes at tax time. Assuming you will file jointly with your husband - this will depend also on combined income, deductions you have (educational expenses, student loan interest etc), withholding your husband has at his work, and so on.

Customer: replied 10 years ago.

Does this mean that I will receive a net pay of $3,368 each month assuming I file jointly with my husband?

Expert:  Lev replied 10 years ago.

This will be your net pay with assumed filing of W-4 (married with one allowance).

This is the amount you will receive every two weeks (in month it would be a little more because you will have 26 pay periods - not 24). Your net pay per year is expected to be $1,684 * 26 = $43,784, or per month - $43,784/12 = $3,648 - this is a more exact amount.

The actual taxes will be calculated at the time you file your tax return based on your combined income and deductions. You may receive a refund if calculation shows that you overpaid, or additional taxes might be due if you underpaid.

Lev and other Tax Specialists are ready to help you