# WHERE DOES THE MONEY GO? A Lesson in Adulthood. First, Let’s Take Out Federal Income Tax  \$9, 075-\$36,900  Subtract 9,075 from your income  Multiply.

## Presentation on theme: "WHERE DOES THE MONEY GO? A Lesson in Adulthood. First, Let’s Take Out Federal Income Tax  \$9, 075-\$36,900  Subtract 9,075 from your income  Multiply."— Presentation transcript:

WHERE DOES THE MONEY GO? A Lesson in Adulthood

First, Let’s Take Out Federal Income Tax  \$9, 075-\$36,900  Subtract 9,075 from your income  Multiply remainder by.15  Add \$907.50 to that number. This is total is your tax.  

First, Let’s Take Out Federal Income Tax  \$39,900.01-\$89,350  Subtract 36,900 from your income  Multiply remainder by.25  Add \$5,081.25 to that number. This is total is your tax.  

First, Let’s Take Out Federal Income Tax  \$89,350.01-\$186,350  Subtract \$89350 from your income  Multiply remainder by.28  Add \$18,193.75 to that number. This is total is your tax.  

You’re not done. State tax!  \$25,000-\$49,999.99  Multiply your original income (not after federal tax amount) by.0336  Add \$691.00 to that number. This is total is your state tax.  

You’re not done. State tax!  \$50,000-\$149,999.99  Multiply your original income (not after federal tax amount) by.0424  Add \$1,531 to that number. This is total is your state tax.  

Still not done! Have to pay for the old people!  Multiply your original income by 0.062%. This is your total social security contribution  

Now, Lets See What You Make Per Month  Subtract federal taxes, state taxes, and social security from your income  Divide the remainder by 12  This is what you have to live on each month   x 1,000,000,000,000,000,000,000,000,000,000

Place to Live:  Subtract the monthly rental amount from your monthly income  Subtract about \$100 for cable and internet  Subtract about \$110 for electricity and water  What do you have left?  

What about student loans?  For every \$10,000 in student loans, expect to pay about \$110 per month FOR TEN YEARS  Example: \$40,000 in student loans = \$440 per month FOR TEN YEARS That \$40,000 dollar loan will cost you about 53,000  Figure out your monthly payment and subtract it from your remaining monthly income

What We Didn’t Include In This:  Car maintenance/car payment  Car insurance  Gas  Renter’s insurance  Health insurance  Cell phone  Food  Toiletries and household products  Pet related costs  Entertainment Can you make it work???????

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