Stuart A. Bronstein wrote:
- quote -

No, Stu. He's almost entirely in the 15% tax bracket. He
currrently has 75,000 gross income, taxable income of
54,350, US tax of 7,398 and MD tax of 5,300 for net takehome
of about $63,280 )(minus wifes' SS). If he takes $29,130
salary (total income $79,130) he'll have 62,230 taxable
income for US Tax of 8673 and MD tax of 4947 and 2,228 SS on
his 29,150 salary for a net of bout 63,280

In other words at $29,130 salary instead of $25,000 SS his
"take-home" will be the same.

ed.

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Stuart A. Bronstein wrote:
- quote -

With a standard deduction for MFJ and two personal
exemptions, the marginal tax rate is only 15%. Like the
other posters, I also get a number very close to $30,000
including payroll tax and state tax, using 2005 law.

-Mark Bole

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"ed" <edcosoft[at]sbcglobal.net> wrote:
- quote -

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

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Dick Adams wrote:

- quote -

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

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Dick Adams wrote (in response to a reply):

- quote -

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

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Dick Adams wrote:

- quote -

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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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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