Rather than say % of income net after tax?
11-02-2011, 05:54 PM #1
11-02-2011, 05:57 PM #2
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11-02-2011, 06:06 PM #3
10.4k @ 10% = 1140.
Only people making 9.6K gross are "federally" tax free -- they still pay taxes such as SS Medicare, gas tax (if own a car and fuel it up) sales tax (if they don't grow their own food) land tax (if they own property).
Poverty level is 10890 Gross in America currently -- so even they will pay some federal tax. about.. 1690 so... 170 dollars.
The main problem with poverty calculations is they don't include "housemates" (roommates) in these calculations.
Technically in these calculations -- people living in poverty should be much higher given the threshold but we don't count college students living in dorms, those in shelters, runaways, or people in jail/prison.
Basically if you're making 10K a year gross -- and let us say you were self-employed...
2.9% for meidcare/caid
10.4% for self employed.
So, you got your 169 federal tax right off the bat
then you pay
1618.37 is your SS/Med/Fed tax which brings your net to at least 9271.63.
Let us say you had an apartment you shared with 2 other people at 600 a month (and it included all utility also crazy)
Leaves you with 6871.63.
You can't afford a car so you walk or bike
Your employer (as you are self-employed and clients don't give you that) isn't getting you health insurance (but you'll soon be required to get it) so let us say you are young and healthy and can get a plan that only costs you 100 a month.
That leaves with you 5671.63.
Let us say you spend at least 300 a month on food.
If you have a phone (likely a cell phone) you're paying 40 dollars a month.
That is your savings per year. This is under the assumption you have no debt, you don't get sick (deductible would be like 2000 on an insurance plan like that for a single person or it would include some co-pay).
And what about dental insurance? Like 25-50 a month?
420 probably would have a 200 dollar deductable too.
Good chance you'll get hit by a car, hurt yourself in the winter while riding/walking to work, and you will have cavities too and you will get sick. Just "living" will eat up those savings.
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