Quote:
Originally Posted by bossku69
i dont see how it would work unless you are 15 living in your parents house. $5/hour at a 40 hour week is $10,400 a year
My  mid/low end living costs in the US:
Rent: $600
Car: $300
Food: $250
Gas: $100
Insurance: $100
Other stuff: $150
Total $1500
(i know you can live on less, but im assuming this is the average)
that means you have to make $2142 BEFORE taxes (assuming the IRS takes 30% of your check)... which is $12.36 hour
math = ((2142*12)/52)/40=12.36 |
First of all minimum wage is $5.85 an hour not $5 and it's goes up to $6.55 this July and up to $7.25 in July 2009. Secondly the IRS wouldn't take 30% of your taxes if you made that little. In fact even if you made $100K a year the IRS wouldn't take 30% of your money even if you include FICA taxes. People WAY overestimate how much the IRS can actually take from you. If I win $100 MILLION in the powerball lottery the most I'd pay is 35%
Say you made $10 an hour that's about $21,000 a year. Now say you're single and have no dependants other than yourself and no fancy deductions. In other words this is the WORST tax situation to be in. FICA taxes would be about $1600 a year. As for income taxes.
for 2007
Gross income $21,000
-$5350 for standard deduction
-$3400 for dependant( yourself )
taxble income $12,250
The first $7850 of taxble income is taxed at 10% for single people. The remaining $4400 is taxed at 15% for a total of ~$1400
So FICA tax $1600
Income tax $1400
TOTAL $3000
After tax income 18,000. Monthly average $1500
So you can clear $1500 a month by making about $10 an hour not $12.36