In my opinion its really simple.
Figure at 16,000 you'll end up paying 30% -- in federal, city and state taxes.
Federal alone is what you're worried about when the end of year comes and you have to "pay your taxes."
For 2007 Federal Income tax brackets you have:
http://www.irs.gov/formspubs/article...164272,00.html
$7,825 $31,850 $782.50 plus 15% of the amount over 7,825
So it looks like my initial 30% was too high.
You should be paying roughly 16,000 - 8000 = 8000 * 15% = 1200 + 782.50 = 2000$ in taxes!!! very nice!
Figure with some deductions like the guys mentioned above you may end up paying $0
PS> In the future get an accountant who can keep better track of your year end finances than you could and you'll save yourself a lot of money