Seeking Honest Advice
#22
Gets Weekends Off
Joined APC: Mar 2017
Posts: 559
This means it’s up to United if they want to offer such a thing to us in the future. Which was everyone’s prior assumption to begin with.
#24
Line Holder
Joined APC: Aug 2014
Position: The Bird is the Word
Posts: 27
[QUOTE=Flogger;2764307]To the OP: You do realize the bonus is taxed? So, you can pay off maybe 16K in credit card debt?
Most Folks don't really understand the Tax System. Yeah, the Company will take out Withholding at a higher percentage from your Bonus, but at the end of the year when you settle up with Uncle Sugar, you will get it back. Most F.O.'s won't breach the 12% Tax Bracket anyway. You can also run the IRS.gov Withholding Calculator every month and change your W-4 with the Company and get them to withhold less Federal Income Tax (you can't change your withholding on FICA Taxes). So, this allows you to keep more of your income, but then, not receive a Tax Refund, or much of one, the following year. This is particularly salient if you are relying on CC' s to bridge the gap. Additionally, as interest rates rise, it will be beneficial for you, and not the US Government to collect the interest throughout the year, instead of giving .gov an interest free loan.
Another way to forestall the Taxman is to max your 401k out & if you are real Bada$$, to max out an additional IRA on top of the 401k- a lot of Folks are unaware that you can do this. You can also get your MAGI down enough to qualify for the EITC (Earned Income Tax Credit) and the Saver's Credit or Form 8880 (which gives you free money to encourage retirement savings in one's 401k, or IRA.
We have a Progressive Income Tax in this Country which means everybody pays zero until a certain amount and then everyone pays 12% of every dollar ABOVE that amount and it goes on and on till you hit the max bracket. Every Dollar that goes into the next higher Bracket only gets taxed at the higher rate for that, and all subsequent dollars. Hope this helps some Folks here. I too used to be a debt slave and didn't understand how the tax system worked. Good Luck!
Most Folks don't really understand the Tax System. Yeah, the Company will take out Withholding at a higher percentage from your Bonus, but at the end of the year when you settle up with Uncle Sugar, you will get it back. Most F.O.'s won't breach the 12% Tax Bracket anyway. You can also run the IRS.gov Withholding Calculator every month and change your W-4 with the Company and get them to withhold less Federal Income Tax (you can't change your withholding on FICA Taxes). So, this allows you to keep more of your income, but then, not receive a Tax Refund, or much of one, the following year. This is particularly salient if you are relying on CC' s to bridge the gap. Additionally, as interest rates rise, it will be beneficial for you, and not the US Government to collect the interest throughout the year, instead of giving .gov an interest free loan.
Another way to forestall the Taxman is to max your 401k out & if you are real Bada$$, to max out an additional IRA on top of the 401k- a lot of Folks are unaware that you can do this. You can also get your MAGI down enough to qualify for the EITC (Earned Income Tax Credit) and the Saver's Credit or Form 8880 (which gives you free money to encourage retirement savings in one's 401k, or IRA.
We have a Progressive Income Tax in this Country which means everybody pays zero until a certain amount and then everyone pays 12% of every dollar ABOVE that amount and it goes on and on till you hit the max bracket. Every Dollar that goes into the next higher Bracket only gets taxed at the higher rate for that, and all subsequent dollars. Hope this helps some Folks here. I too used to be a debt slave and didn't understand how the tax system worked. Good Luck!
Last edited by DrunkenShytbird; 02-15-2019 at 08:58 AM.
#25
Not a recruiter - I prefer flying the line. I just enjoy being a counterbalance to the mopey cynics that still can’t get hired at a major and love to spread their misery.
#26
[QUOTE=DrunkenShytbird;2764741]
I was swagging. The bonuses are tax withheld at a stupid rate, and yes, you get some back based on your tax filing, but it could very well be the OP was thinking he'd get a check for 27K. I was just letting him know that't not the case.
These jobs are some folks first jobs with things like bonuses.
To the OP: You do realize the bonus is taxed? So, you can pay off maybe 16K in credit card debt?
Most Folks don't really understand the Tax System. Yeah, the Company will take out Withholding at a higher percentage from your Bonus, but at the end of the year when you settle up with Uncle Sugar, you will get it back. Most F.O.'s won't breach the 12% Tax Bracket anyway. You can also run the IRS.gov Withholding Calculator every month and change your W-4 with the Company and get them to withhold less Federal Income Tax (you can't change your withholding on FICA Taxes). So, this allows you to keep more of your income, but then, not receive a Tax Refund, or much of one, the following year. This is particularly salient if you are relying on CC' s to bridge the gap. Additionally, as interest rates rise, it will be beneficial for you, and not the US Government to collect the interest throughout the year, instead of giving .gov an interest free loan.
Another way to forestall the Taxman is to max your 401k out & if you are real Bada$$, to max out an additional IRA on top of the 401k- a lot of Folks are unaware that you can do this. You can also get your MAGI down enough to qualify for the EITC (Earned Income Tax Credit) and the Saver's Credit or Form 8880 (which gives you free money to encourage retirement savings in one's 401k, or IRA.
We have a Progressive Income Tax in this Country which means everybody pays zero until a certain amount and then everyone pays 12% of every dollar ABOVE that amount and it goes on and on till you hit the max bracket. Every Dollar that goes into the next higher Bracket only gets taxed at the higher rate for that, and all subsequent dollars. Hope this helps some Folks here. I too used to be a debt slave and didn't understand how the tax system worked. Good Luck!
Most Folks don't really understand the Tax System. Yeah, the Company will take out Withholding at a higher percentage from your Bonus, but at the end of the year when you settle up with Uncle Sugar, you will get it back. Most F.O.'s won't breach the 12% Tax Bracket anyway. You can also run the IRS.gov Withholding Calculator every month and change your W-4 with the Company and get them to withhold less Federal Income Tax (you can't change your withholding on FICA Taxes). So, this allows you to keep more of your income, but then, not receive a Tax Refund, or much of one, the following year. This is particularly salient if you are relying on CC' s to bridge the gap. Additionally, as interest rates rise, it will be beneficial for you, and not the US Government to collect the interest throughout the year, instead of giving .gov an interest free loan.
Another way to forestall the Taxman is to max your 401k out & if you are real Bada$$, to max out an additional IRA on top of the 401k- a lot of Folks are unaware that you can do this. You can also get your MAGI down enough to qualify for the EITC (Earned Income Tax Credit) and the Saver's Credit or Form 8880 (which gives you free money to encourage retirement savings in one's 401k, or IRA.
We have a Progressive Income Tax in this Country which means everybody pays zero until a certain amount and then everyone pays 12% of every dollar ABOVE that amount and it goes on and on till you hit the max bracket. Every Dollar that goes into the next higher Bracket only gets taxed at the higher rate for that, and all subsequent dollars. Hope this helps some Folks here. I too used to be a debt slave and didn't understand how the tax system worked. Good Luck!
These jobs are some folks first jobs with things like bonuses.
#28
Gets Weekends Off
Joined APC: Sep 2011
Position: lav dumper
Posts: 707
#29
Gets Weekends Off
Joined APC: Oct 2016
Posts: 846
Seeking Honest Advice
To the OP: You do realize the bonus is taxed? So, you can pay off maybe 16K in credit card debt?
You'll incur moving expenses, etc.
Find a cheaper place in CO for now. There's always a cheaper place.
Upgrade quick. Live on your FO pay and put all the CA pay toward the debt.
Try to shop the credit card or talk to your bank and family about refinancing the debt.
And cut up your credit card until it's paid off. Don't cancel the credit card because that will hurt your credit rating. Use a debit card until the credit card is paid off. That will guarantee you don't build a balance.
Once the credit debt is paid, call your credit card company and report you cut the card up a while back and you need a new card.. Then get rid of the debit card, because they are not as safe as a credit card, theft-wise.
Then call Dave Ramsey and brag.
You'll incur moving expenses, etc.
Find a cheaper place in CO for now. There's always a cheaper place.
Upgrade quick. Live on your FO pay and put all the CA pay toward the debt.
Try to shop the credit card or talk to your bank and family about refinancing the debt.
And cut up your credit card until it's paid off. Don't cancel the credit card because that will hurt your credit rating. Use a debit card until the credit card is paid off. That will guarantee you don't build a balance.
Once the credit debt is paid, call your credit card company and report you cut the card up a while back and you need a new card.. Then get rid of the debit card, because they are not as safe as a credit card, theft-wise.
Then call Dave Ramsey and brag.
Another way to forestall the Taxman is to max your 401k out & if you are real Bada$$, to max out an additional IRA on top of the 401k- a lot of Folks are unaware that you can do this. You can also get your MAGI down enough to qualify for the EITC (Earned Income Tax Credit) and the Saver's Credit or Form 8880 (which gives you free money to encourage retirement savings in one's 401k, or IRA.
A lot of good information. I would also add another item of interest for many pilots, that you can take advantage with a lower MAGI, is the student loan interest deduction. All these items mentioned, including being able to contribute to an IRA, have a MAGI phaseout and limit.
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