After bonuses, how much do regional pilots RE
03-26-2017 | 03:36 PM
#31
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I’m considering a career change going CFI to regional route and I’m trying to figure out how much regional pilots REALLY get paid so I can plan a budget.
I’ve seen all the pay scales for each regional airline. However, it’s challenging to deduce how much regional pilots really take home because of the ambiguous bonuses and bullish regional airline recruitment marketing promising “up to $65K FIRST YEAR FO PAY!!!”
After looking at pay scales, it looks like first year FOs at most regional airlines make about $37K @75 hours p/m. Even if I received a $15k bonus, bonuses are taxed at a much higher rate than regular comp.
When bonuses are factored in, taxes deducted, how much do regional pilots actually take home each month?
How much should I realistically expect to make my first year? How much for 2nd-4th year? How much do regional captains really make?
Yes, I know there will be many variables that will create various answers. I’m just hoping to get a general idea of how much take home pay will really be to create a budget.
I’ve seen all the pay scales for each regional airline. However, it’s challenging to deduce how much regional pilots really take home because of the ambiguous bonuses and bullish regional airline recruitment marketing promising “up to $65K FIRST YEAR FO PAY!!!”
After looking at pay scales, it looks like first year FOs at most regional airlines make about $37K @75 hours p/m. Even if I received a $15k bonus, bonuses are taxed at a much higher rate than regular comp.
When bonuses are factored in, taxes deducted, how much do regional pilots actually take home each month?
How much should I realistically expect to make my first year? How much for 2nd-4th year? How much do regional captains really make?
Yes, I know there will be many variables that will create various answers. I’m just hoping to get a general idea of how much take home pay will really be to create a budget.
03-26-2017 | 05:41 PM
#32
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Joined: May 2016
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Pay actually categorized as a bonus is required to be withheld at the 25% federal rate no matter what. If you know you have set bonuses coming in a given year you can adjust your withholding on your normal paychecks so that you pay less in income taxes every pay period (thus keeping your money for yourself) instead of giving the government and interest-free loan that they bump back to you as a refund.
03-26-2017 | 06:13 PM
#33
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What they take out in taxes doesn't matter. What matters in the end is your total tax liability. (What you SHOULD have paid the government in taxes).
If you paid them $12k throughout the year, and should have paid them $10k, you will get $2k back. Conversely, if you paid them $8k and owed $10k, you would have to pay them money at the end of the year.
Now, if you are getting a lot of bonuses (which most companies tax at 25% - yours may tax it differently, but 25% is accounting industry standard), and you actually pay less than 25%, then you will likely get money back from what you paid extra. If your tax liability is 20%, and you pay 25% in bonus taxes, then you will obviously get that 5% back.
Now, what tennis was saying...
If you are getting a lot of bonuses which are taxed at a higher rate than you normally pay, you can increase the number of dependents (for example) to more than you really have. You would have to pay less in tax each month, but your bonus will still be taxed the same way.
So, you would be shorting the government in your regular paycheck taxes. BUT... you would be overpaying with what is taken out for bonuses. If your accountant is good, you can make it so these two numbers are almost equal. At the end of the year, you will pay exactly in taxes what your total tax liability is.
In the end, all the government cares about is that you paid them what they are owed. (Businesses are different, and required quarterly or monthly tax estimates MUST be made).
Personally, this is too much work for me. I have 3 kids, claim three, and get $3800 back in taxes. But if you are smart, you can do it.
If you paid them $12k throughout the year, and should have paid them $10k, you will get $2k back. Conversely, if you paid them $8k and owed $10k, you would have to pay them money at the end of the year.
Now, if you are getting a lot of bonuses (which most companies tax at 25% - yours may tax it differently, but 25% is accounting industry standard), and you actually pay less than 25%, then you will likely get money back from what you paid extra. If your tax liability is 20%, and you pay 25% in bonus taxes, then you will obviously get that 5% back.
Now, what tennis was saying...
If you are getting a lot of bonuses which are taxed at a higher rate than you normally pay, you can increase the number of dependents (for example) to more than you really have. You would have to pay less in tax each month, but your bonus will still be taxed the same way.
So, you would be shorting the government in your regular paycheck taxes. BUT... you would be overpaying with what is taken out for bonuses. If your accountant is good, you can make it so these two numbers are almost equal. At the end of the year, you will pay exactly in taxes what your total tax liability is.
In the end, all the government cares about is that you paid them what they are owed. (Businesses are different, and required quarterly or monthly tax estimates MUST be made).
Personally, this is too much work for me. I have 3 kids, claim three, and get $3800 back in taxes. But if you are smart, you can do it.
03-26-2017 | 06:28 PM
#34
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Joined: Feb 2016
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Bonuses are taxed in either of two methods; included as regular salary (which will cause tax fluctuations such as you mention), or as a flat 25% rate, separate from salary. (This all on the federal level; other items come out at the same rate no matter how it is taxed federally, such as state, union dues, SS, etc.)
Also, dependents have no affect on a flat-tax-rate bonus; it's 25% whether you have 0 or 10. One can adjust the withholding on their salary (making it less) to compensate for the higher withholding on a bonus, however.
It all depends on how the company decides to handle the bonus; flat rate or as part of income.
Also, dependents have no affect on a flat-tax-rate bonus; it's 25% whether you have 0 or 10. One can adjust the withholding on their salary (making it less) to compensate for the higher withholding on a bonus, however.
It all depends on how the company decides to handle the bonus; flat rate or as part of income.
This is absolute horse ____. I could send you my pay stubs, w2s, and tax return to prove my point but I prefer not to publish this information. Needless to say I have paid 20, 23, 27%(total taxes) 12, 15, 19% (federal income) on bonuses. The larger the bonus the larger the percentage withheld. Deductions also matter in percentage of taxes withheld.
03-26-2017 | 07:54 PM
#35
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Joined: May 2016
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Bonuses are taxed in either of two methods; included as regular salary (which will cause tax fluctuations such as you mention), or as a flat 25% rate, separate from salary. (This all on the federal level; other items come out at the same rate no matter how it is taxed federally, such as state, union dues, SS, etc.)
Also, dependents have no affect on a flat-tax-rate bonus; it's 25% whether you have 0 or 10. One can adjust the withholding on their salary (making it less) to compensate for the higher withholding on a bonus, however.
It all depends on how the company decides to handle the bonus; flat rate or as part of income.
Also, dependents have no affect on a flat-tax-rate bonus; it's 25% whether you have 0 or 10. One can adjust the withholding on their salary (making it less) to compensate for the higher withholding on a bonus, however.
It all depends on how the company decides to handle the bonus; flat rate or as part of income.
03-26-2017 | 08:36 PM
#36
Gets Weekends Off
Joined: May 2016
Posts: 1,609
Likes: 0
What they take out in taxes doesn't matter. What matters in the end is your total tax liability. (What you SHOULD have paid the government in taxes).
If you paid them $12k throughout the year, and should have paid them $10k, you will get $2k back. Conversely, if you paid them $8k and owed $10k, you would have to pay them money at the end of the year.
Now, if you are getting a lot of bonuses (which most companies tax at 25% - yours may tax it differently, but 25% is accounting industry standard), and you actually pay less than 25%, then you will likely get money back from what you paid extra. If your tax liability is 20%, and you pay 25% in bonus taxes, then you will obviously get that 5% back.
Now, what tennis was saying...
If you are getting a lot of bonuses which are taxed at a higher rate than you normally pay, you can increase the number of dependents (for example) to more than you really have. You would have to pay less in tax each month, but your bonus will still be taxed the same way.
So, you would be shorting the government in your regular paycheck taxes. BUT... you would be overpaying with what is taken out for bonuses. If your accountant is good, you can make it so these two numbers are almost equal. At the end of the year, you will pay exactly in taxes what your total tax liability is.
In the end, all the government cares about is that you paid them what they are owed. (Businesses are different, and required quarterly or monthly tax estimates MUST be made).
Personally, this is too much work for me. I have 3 kids, claim three, and get $3800 back in taxes. But if you are smart, you can do it.
If you paid them $12k throughout the year, and should have paid them $10k, you will get $2k back. Conversely, if you paid them $8k and owed $10k, you would have to pay them money at the end of the year.
Now, if you are getting a lot of bonuses (which most companies tax at 25% - yours may tax it differently, but 25% is accounting industry standard), and you actually pay less than 25%, then you will likely get money back from what you paid extra. If your tax liability is 20%, and you pay 25% in bonus taxes, then you will obviously get that 5% back.
Now, what tennis was saying...
If you are getting a lot of bonuses which are taxed at a higher rate than you normally pay, you can increase the number of dependents (for example) to more than you really have. You would have to pay less in tax each month, but your bonus will still be taxed the same way.
So, you would be shorting the government in your regular paycheck taxes. BUT... you would be overpaying with what is taken out for bonuses. If your accountant is good, you can make it so these two numbers are almost equal. At the end of the year, you will pay exactly in taxes what your total tax liability is.
In the end, all the government cares about is that you paid them what they are owed. (Businesses are different, and required quarterly or monthly tax estimates MUST be made).
Personally, this is too much work for me. I have 3 kids, claim three, and get $3800 back in taxes. But if you are smart, you can do it.
Two topics you need to read about. Flat tax and the aggregate tax rate. Google this and read about it to help you understand what Highflight is talking about. You are getting the two confused.
Turbo tax has a really simple version or you can dig through the IRS site for it.
03-27-2017 | 03:02 AM
#37
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Joined: Sep 2016
Posts: 755
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Woah!!!!!!!!!!! So wrong!!!!! Absolutely the worst advice ever!!! A little knowledge will get you into a lot of trouble.
Two topics you need to read about. Flat tax and the aggregate tax rate. Google this and read about it to help you understand what Highflight is talking about. You are getting the two confused.
Turbo tax has a really simple version or you can dig through the IRS site for it.
Two topics you need to read about. Flat tax and the aggregate tax rate. Google this and read about it to help you understand what Highflight is talking about. You are getting the two confused.
Turbo tax has a really simple version or you can dig through the IRS site for it.
You should and get an MBA and work for an accounting firm for a few years, and then let's continue this discussion.
03-27-2017 | 04:01 AM
#38
Banned
Joined: Aug 2012
Posts: 554
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From: B-767 FO
I made $18,600 my first year at Pinnacle in 2004. Also, they didn't pay us during training or provide a hotel.
Be grateful for the progress that has been made over what were very challenging/difficult times for some of your peers.
03-27-2017 | 04:38 AM
#39
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Joined: Feb 2013
Posts: 3,157
Likes: 20
It's income. Whatever tax table you are in at the end of the year is what your income is taxed at before deductions and credits.
A bonus might have a higher amount of taxes withheld at the time the check was cut, but if you have overpaid your taxes, it all comes out in the wash at the end of the year with a larger tax refund.
03-27-2017 | 04:43 AM
#40
Roll’n Thunder
Joined: Oct 2009
Posts: 5,174
Likes: 584
From: Pilot
This is not true, it seems to be an airline pilot thing for some reason.
It's income. Whatever tax table you are in at the end of the year is what your income is taxed at before deductions and credits.
A bonus might have a higher amount of taxes withheld at the time the check was cut, but if you have overpaid your taxes, it all comes out in the wash at the end of the year with a larger tax refund.
It's income. Whatever tax table you are in at the end of the year is what your income is taxed at before deductions and credits.
A bonus might have a higher amount of taxes withheld at the time the check was cut, but if you have overpaid your taxes, it all comes out in the wash at the end of the year with a larger tax refund.
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