How much gross salary to save $1,200/mo.? (Phoenix: income, tax)

[banger]

I dare say "Yukon" is probably right on the mark.

However another way to look at this math problem is.....

$1,200/month= $14,400/year.

For ease of example, I will round to an even 14K.

We don't know your income (and I don't know the new tax codes lol).

However by the old method..... estimate an approx. 25% tax bracket.

End result, whatever your monthly bills..... you will probably need an extra $17,500 in yearly income to support your goal.

[LadmoFan]

You can go to Sperling Moderator cut: link removed, competitor site
to compare the cost of living between cities. I think there is a cost of living index at Sperling. You should be able to determine if your current location is more or less than living in the Phoenix area.

You can also find general information about salaries based on occupation.

Here's a comparison between Ontario, CA and Phoenix, AZ using a salary of $50,000.

Moderator cut: link removed, competitor site

Here's a comparison between Ontario, CA and Phoenix, AZ using a salary of $100,000

Moderator cut: link removed, competitor site

I am not sure what your occupation is but here's what an electronics engineer can make in Phoenix:

https://www.glassdoor.com/Salaries/p...678_KO8,27.htm which is 78,583 per year.

Finally, the cost of living in Phoenix is lower than average than most of the US. You can check that at Sperling too.

I should also add you can either make more money or lower your expenses or do a bit of both to reach your goal.

Hope this helps!

[PhureeKeeper]

What are you putting this $1200 per month towards? Will it go towards 401(k)? That would reduce your tax obligation.

[Returning2USA]

Originally Posted by man4857

Piggybacking what Yukon said:

Here's my breakdown for my complex in Gilbert.

1050 rent (trash/water/sewer included)
65 electric (averaged over a 12 month period, SRP EZ-3 Plan + newer apartment complex drives down cooling costs in summer, run as far as you can from APS)
300 groceries/eating out
45 Internet (30 mbps Cox, buy the modem outright from Amazon for $30-40)
100 gas/maintenance (I drive a Camry Hybrid averaging 42mpg, your car choice will change this expense)
130 car/renters insurance (1 year policy combined car/renters, 1K deductible, 100/300K coverage, dividend policy, 10k coverage on renters)
200 incidentals
45 cell phone (AT&T prepaid 6GB for me, that's $40 + Tax, buy the phone outright)
1200 savings

Total 3135

Edit:
Also like to add 7.65% for FICA (15.3% if self-employed/contract/freelance)

Gross Income - Special Deductions (healthcare/HSA, etc..) = "Gross Income" (What'd you see on your W2) = Then - (401k deduction + Standard deduction + person exemption) = Taxable Income subject to tax tables below + Gross Income * 7.65% is the FICA portion
Federal/State Income tax does not deduct each other, they are calculated separately.

Federal Income Tax:
Bracket 1: 10% 0-9525
Bracket 2: 12% 9526-38700
Bracket 3: 22% 38701-82500
Standard Deduction for Single: 12000

AZ Income tax:
Bracket 1: 2.59% 0-10163
Bracket 2: 2.88% 10164-25406
Bracket 3: 3.36% 25407-50812
Bracket 4: 4.24% 50813-152434
Standard Deduction + Personal Exemption: 5183 + 2150 = 7333

Ex: If Gross Income was 40000, then federal income tax would be as follows:
Taxable Income = 40000 - 12000 Standard Deduction = 28000
Bracket 1: On the first 9525 - 952.50
Bracket 2: On the next 29175 (28000-9525) * 12% =2217
Total Fed Income tax: 3657 + 952.50 = 3169.50
Total FICA Tax = Gross Income * 7.65% = 3060

State tax would be as follows:
Taxable Income = 40000 - 7333 Standard Deduction/Personal Exemption = 32667
Bracket 1: On the first 10163 = 101.63
Bracket 2: On the next 22504 (32667-10163) * 2.88% = 648.12
Total AZ Income tax = 101.63 + 648.12 = 749.75

Thanks, Man4857.

[Returning2USA]

Originally Posted by DetroitN8V

Makes sense. Without going overboard with calculations, you can conservatively figure that you'll net around 64% of your gross, if contributing to a 401k and having insurance deducted.

Cheers, DN8V

I've had a 401K in the past and b/c of the hidden frees from the banks/fiduciaries (secretly stealing sometimes up to 1/3 of contributions) I will decline the 401K and just put money into Vanguard Index Funds and other places. Yes, Congress passed a law making hidden fees/stealing a few years ago, but I've lost my faith. I stopped maxing my ROTH IRA out and put money elsewhere. I know some/many will disagree with me on this. Congress can change the rules on us on tax rates and basic rules anytime.

Yes, I will want medical insurance.

I recall you noting the netting of $3500 per month from $70K gross on a thread 2 weeks ago.

Until part of my job was outsourced I was netting about $3,600-3,700 per month but earning far less than $70K gross. I understand where I live and the US are obviously different.

Also worth noting is that I'm not preocupied with "money" but it's important for me to know the basics about the numbers before arriving.

General lifestyle as a whole is also very important. Liking what I do, living in an interesting and fun part of Phoenix and enjoying the small things in life.

[Returning2USA]

Originally Posted by PhureeKeeper

What are you putting this $1200 per month towards? Will it go towards 401(k)? That would reduce your tax obligation.

Vanguard Index and other places (no crypto currencies, hee-hee).

I'm in my late 40s and plan to grow old (knock on wood) and die in South East Asia and the amount needed to fund a good lifestyle with medical coverage is far less than in the US.

[yukon]

I don't know what your insurance will be, but you can go to healthcare.gov to get a quote. You'd need to pick qualifying event/moved to new state. My rate is $998/mo, I'm 60.

[Returning2USA]

Originally Posted by yukon

I don't know what your insurance will be, but you can go to healthcare.gov to get a quote. You'd need to pick qualifying event/moved to new state. My rate is $998/mo, I'm 60.

Cheers for the info.

I am hoping to get medical insurance through a company plan (I'll be working).

I'm in my late 40s.

[caryberry]

Originally Posted by DetroitN8V

Isn’t this just a math question?

...and why is this thread on the Phoenix area forum?

[Colt AZ]

Originally Posted by Returning2USA

What gross monthly gross earnings will allow me to save $1,200?

Originally Posted by DetroitN8V

Isn’t this just a math question?

Hey! I'm pretty sure I saw this on a really old middle school math test... right after this question:

Train A leaves the station traveling at 30 miles per hour. Two hours later train В leaves the same station traveling in the same direction at 40 miles per hour. How far from the station was train A overtaken by train B?
(A) 180
(B) 240
(C) 270
(D) 300
(E) 320