Originally Posted by
Malcolm Tent
You are correct, and I apologize for being insensitive. I sometimes forget that 4 grand is a significant amount of money for some people. For me the estimate is “close enough”, but I completely understand that it isn’t for you.
Apology accepted, but I wasn't personally offended just trying to point out that there is the correct way to do it per ALPA's guidance. Improper methodology has caused angst by some when they didn't get what they were expecting. Considering that the bonus is being taxed at 22% vs. most everyone's normal income tax rate, any miscalculation can lead to a significant difference in income estimation for those in the pilot group looking to properly estimate their own tax burden for this year so as to send the IRS money before December 31st/January 15th.
Originally Posted by
Malcolm Tent
And to come up with a $4200 delta your starting numbers must have been different by $30,000. So maybe you’re making $360,000 per year and looking at a bonus of $38,000?
My hats off to you on your past education for being able to give that accurate estimate. Unfortunately many these days couldn't figure that out if they were given all the numbers except the three zeroes after the $38,XXX. BTW, my original post was not meant to brag in anyway, but as someone else said, $4,000 is not an insignificant amount of money for most people.