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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10105
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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If my pension check is a gross 16,667.00 per month. What

Customer Question

If my pension check is a gross 16,667.00 per month. What taxes will be taken out ? What should I expect my net spendable income will be?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: My question is above this line
JA: Is there anything else important you think the Accountant should know?
Customer: I live in ca. And will have to pay state tax. I want an idea of how much will be left for my monthly expenses?
Submitted: 7 days ago.
Category: Tax
Expert:  Lane replied 7 days ago.

Hi. My name’s Lane … I can help here

I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

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Please let me know how you file (single filer or married filing jointly) tax brackets are different.

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Once you let me know, I'll run the numbers for you

Expert:  Lane replied 7 days ago.

OK, while I'm waiting, Here's what the numbers look like for a single filer with no dependants

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Income Tax Calculations

California

Federal

Gross Income$200,004.00$200,004.00

Deductions for AGI($0.00)($0.00)

Adjusted Gross Income (AGI)$200,004.00$200,004.00

Deductions and Personal Exemptions

Standard Deduction
(Single)($3,906.00)($6,300.00)

Personal Exemption
(One dependant)($0.00)($4,000.00)

Personal Exemption
(One filer exemption)($106.00)($0.00)

Taxable Income$195,992.00$189,704.00

Federal Income TaxShow Calculations $46,208.57

California Income TaxShow Calculations$15,738.49

Additional Taxes

FICA Tax
(Payroll social security tax on $118,500, see note)($0.00)($7,347.00)

Medicare Tax
(Payroll medicare tax on $200,004)($0.00)($2,900.10)

Gross Tax$15,738.49$56,455.67

Tax Credits & PaymentsN/AN/A

Owed Tax ..... State: $15,738. Federal: 49$56,455.67

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Gross Income ... $200,004.00

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Total Tax (Pre-Credits) ... $72,194.16

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Total Owed Tax ... $72,194.16

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After-Tax Income ... $127,809.84

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Effective Tax Rate ... 36.1%

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Annotations

  • Your taxable earned income is greater than the current FICA wage cap of $118,500. Any wage income over this amount is not subject to social security taxes (but is subject to Medicare taxes).
  • As of 2013, an Additional Medicare Tax of 0.9% is applicable to all earned income over $200,000 for your filing type. You owe a total of $0 in Additional Medicare Tax (this is included in your Medicare Tax total).
Expert:  Lane replied 7 days ago.

Please Let me know if you have ANY questions, OR if I need to run for a different filing status (this one was single ) before rating me.

But if this HAS helped, and you don’t have more questions on this, … I would appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I won’t be compensated for the work here.

Thank you!

Lane

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