About The Salary Calculator

The Salary Calculator helps you figure out your salary and net take home pay, but it goes much further. This tool also figures in your federal taxes, state taxes, medicare, social security, and a few other important taxable deductions.

Once you’ve entered your information, hit “calculate” and you will see a breakdown and graph summarizing your salary before and after taxes. The results also show you your monthly, weekly, and daily totals.

The results are based on Income Tax and Social Security information for 2010. More information on tax rates here.

Looking to make more money, or get a new job? Be sure to check out our articles on the getting a new job, making money online, and working from home. We have come to realize most of our visitors that are coming to use the Salary Calculator, are also in the process of finding a new job so we’ve tried to cater to them specifically.

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Colorado, Minnesota, Connecticut, and Missouri have just recently joined California along with other dedicated states in the campaign encouraging online sellers to collect sales taxes. Just last month, it was reported that Texas, not exactly a breeding ground of aggressive taxation, charged a $269 million bill to Amazon for uncollected sales taxes.

The result of this legislative battle is quite vague. This concern is no laughing matter for Amazon. Back in 2008, Amazon filed a suit against New York regarding this same issue. They also warned that Amazon will discontinue ties with associated sellers who are situated in states that would try to collect sales taxes. It was reported that they already closed a distribution center in Texas.

If this issue never comes to an end, there is no doubt it will reach the Congress any time soon. They have been avoiding this matter for 20 years already. Anti-Republicans would surely be tied between their governors and local retailers, not to mention the e-tailers as well.

Before going any further, there are three matters that are needed to be clarified. First of all, this issue is not about taxing the Internet. Using the internet is tax-free and nobody’s against it at all, though smart phone contact is as highly taxed as anything in the world.

Second, this does not concern raising taxes. In case you believe sales taxes are too high, then go on and press your case or start a petition to lower them. However, it is not to charge tax differently to a tea kettle bought from one store from the tea kettle bought from the other.

Finally, this matter does not concern whether on-line buyers owe any tax for their online shopping, this is already settled… they do. You are required to pay if you live in a state with sales tax. Provided that the seller does not collect sales tax, the buyer owes what is recognized as use tax. You can see this on your income tax form.

Obviously, almost no one cares to pay, this leads to the unjust upper hand of the online community against the local brick-and-mortar retailers. Some local retailers even face higher taxes when they encounter loss of revenues, while online sellers enjoy more customers since they can offer “discounts”, since they don’t collect sales taxes.

“Nexus” is the legal principle used by out-of-state sellers concerning sales tax collection. Let’s say a business is physically located in a particular state, it is mandatory for them to collect sales tax. The states believe that since Amazon have existing warehouses and associated businesses in their authority; it’s a must that they collect sales tax as well.

The Supreme Court almost begged to put this issue to an end back in 1992, knowing the intricacy of these matters as well as the risk that the contradictory regulations of different states may bring to businesses. During those years, when E-commerce was not yet rampant, the mail-order firms debated that they would have a hard time on keeping track of the different sales tax laws throughout the country hence, the birth of a new commission initiated by the Congress.

Since 1992, technology has rapidly changed. Data miners nowadays are more knowledgeable than before. They can keep track of zip codes with a single click which means the applicable tax law in that area can also be identified in the nick of time. But still, the Internet sales tax war continues. This battle has been being fought by a group of two dozen states for a decade already. It’s about time for the Congress to step in.  If you want to calculate how this sales tax could affect you, try the Salary Calculator.

1. Prepare a list of the taxes that you paid which are not included in federal taxes. On Federal Form 1040 you are eligible to deduct state and local income tax as well as occupational taxes or foreign taxes that you are required to pay. You can also include the expected taxes that have been allotted for your state’s revenue department.

2. Make sure that you lower your tax bracket as it will help you lower your federal income tax. You can request your employer to reduce your salary to get into the 15% tax bracket in case you are near the bracket that fluctuates from 15% Federal to the 25% Federal withholding.

3. Try to deduct loses you have made in the stock market. Your tax loses will not help to overcome your financial loses but you can retrieve a fraction of that amount back by lowering your tax debt.

4. You can take any tax credit if you are eligible for it. Buying a house or spending money from your paycheck for work related purpose can help you reduce your tax debt or you can also obtain a return but it will depend on the year.

5. Expenses that are allowed by the IRS should be deducted immediately. The dental and medical expenses can be deducted as it is allowed by the IRS. If you itemize your interest expenses along with the charitable contributions and theft losses then you can again lower your tax debt.

These are the five essential ways to lower your federal tax debt. Once you pay off your taxes then you can regain your financial independence and lead a debt free life.

To avoid this risk, start sorting your documents way before the last minute. This will make it easier for you when filing your tax return. If you’re not familiar which documents you will need, you may search the internet to see which documents are needed to get the maximum amount of your tax refund.

As you organize your documents, you must also make sure that they are accurate. If you end up filing the wrong information, your tax refund will be affected. Having the correct and appropriate documents will make it less complicated to find the information needed and will save you from the risk of making mistakes.

You must also be familiar with all credits that you may be qualified for. Make sure that you claim them to receive the maximum amount of your tax refund. Some credits are the earned income credit and child and dependent care credit.

You may also fill out the return for free. There are several online sites that provide this service. They allow the users to file their tax refund hassle-free. You just have to be careful with these sites. Make sure that you research about the site you want to use first before filing. There are qualified volunteers that may then help you on your location.

To estimate your monthly or yearly taxes that you’ve paid, just punch your details into the salary calculator.

If you do your taxes yourself, you would be able to save a lot of money since you don’t have to hire a tax preparer.  The service of tax prepares mostly cost around $100 and up even in the simplest tax returns. There is also a possibility of mistakes or miscalculations that may cost you missed tax deductions, penalties and interests.  You may rather use the free online software that the IRS website offers. Its design is perfect for simple tax returns. You may also use any of the filing programs offered by the partners of IRS and members of the Free File Alliance.  But for more complicated tax returns, there is FFA partners propriety online software that may help with those too.

Doing your taxes yourself may have some disadvantages too, especially when you are not knowledgeable on how it must be done. There is a larger possibility of you making a mistake than a professional tax preparer, and they could usually be your representative if ever you have been questioned about your tax returns or worse, subjected to cases of tax audit.

Hiring a tax preparer is not an assurance though.  You cannot be exempted from getting audited even when a professional did your taxes for you. If you want to hire someone to do your taxes, you must consider hiring a certified public accountant (CPA). CPAs are professionals that possess the knowledge, capability and experience to accurately prepare your taxes. In case of penalties or tax audits, they could represent you and defend your tax return. Tax preparers that are not CPAs do not possess the right to defend you in these situations.

Now, when do you need to hire a professional to do your taxes? It would be best to hire tax preparers when you have some investments, real estate transactions, a business with employees and special situations or entitlements. You have to be certain that you choose a CPA tax preparer that specializes in doing tax return that is suited to the condition that you are in. CPAS are not the same, they have different expertise. Make sure to interview them before hiring. Know about their experiences and if they are capable of doing your taxes. This is a step not to be missed, especially when large amounts of money are involved where even small mistakes may result to a loss of thousands of dollars.  It can also be confusing dealing with state income tax rates.

To sum it all up, preparing your taxes yourself is not very difficult. There is free online software available in the IRS and FFS websites that could help you lessen the burden of doing your taxes.  For more complex tax situations like the ones specified above, it is advisable to hire a Certified Public Accountant. This would reduce the risk of going through errors and being subjected to fines, penalties or tax audit. It doesn’t mean that if a CPA did your taxes means you’re safe from tax audits, but they are allowed to defend you when this situation occurs. Remember to evaluate the cost of hiring a CPA alongside your estimated tax liability.

There is a history behind the name of Tea Party. It was from the Townsend Act, the cause of the revolutionary war and the beginning of the well known United States of America. I was able to have a discussion about Tea Party with a New Yorker lately. He is pro Tea Party and he wants lesser taxes. Good thing when the topic is about taxes, I was able to share at least a few things.

I have been around and I have observed a lot of waste from the government. It’s absolutely astounding to see the waste. I agreed with him when he said lesser taxes. I live in California and I believe New York is not very different with the monetary challenges that California is going through. New York may not be suffering as much as California but they are having a hard time solving the problem as well. Paterson just dismissed another 898 state workers. I think he intended to keep it below 900 so it’ll sound less depressing?

Well, I guess federal income tax will continue to increase and further give us a burden as bureaucracy grows as well.  There is an enormous pension obligation and I don’t know if it is even possible to fulfill those promises. “Read My Lips or Read My Tea Leaves – No to Taxes!” I guess that would be the latest cry of the new members of the Tea Party. Honestly, I don’t have any complain on what they’re doing. They have all the right in the world to voice out what they believe in and ask for a change.  I hope that this matter will be taken into account.

If you want to see how these taxes affect your real salary, check out the Salary Calculator

The most important factor in the art of negotiation is communication. Through communication you will be able to inform the company about your past work experiences which may imply the salary you deserve. This must also come with the specifications of what you can provide to the company to be worthy of that amount of salary. Communication also involves conveying your messages clearly to your listener and being a good listener as well to understand the situation. You need to keep this in mind when applying for a job or asking for a raise.

Another step in the art of negotiation is being prepared. You cannot just estimate the salary you deserve from out of nowhere. You have to research about this first. Know how much is the appropriate amount of salary you must be paid for your position and your work experiences. Make a list of all the achievements you had during the past years. Show them what you got; it will be like marketing yourself to the employer. You are the product and you have to let them know that you are worth the price and they need you in their company.

Asking for a raise may not be done anytime you want to, and many people make salary negotiation mistakes. You have to work hard for you to earn the salary that you want. You won’t be receiving any raise if you are performing poorly at your work. Salaries rely on the work that you provide to the company. Be responsible and earn the right to ask for a raise.

You have to know what you want and express it with confidence to earn the raise that you want. Make sure that you deserve the salary that you’re asking for and that the company sees the efforts that you’ve been doing for the company. Remember that confidence and aggressiveness are two different things. Cross the line and you’ll surely lose the opportunity.

Negotiation skills are also useful not only at work, but also in the everyday life. You might be negotiating already and you don’t even know it. Just remember the important factors of negotiation skills and you’ll surely be successful in getting the salary that you deserve.

President Barack Obama has clearly left a mark on history when he won the presidential elections. Eyes are now turned to President Obama as people wonder about his economic plan and what the country would soon face under his regime. How will he take action on the current situation particularly on increasing job opportunities and restoring America’s sinking economy?  Will he take the same path Bush had gone through or will he choose a different way?

A lot of challenging jobs are awaiting our future leaders. Heidi Shierholz who is an economist at the Economic Policy Institute in Washington, D.C., stated that America had a devastating decrease of employment during the first 10 months of 2008 by 1.2 million. The situation got worse as the paychecks were adjusted and dropped to 2.5 percent.

Experts say that it is too early to judge the administration of President Obama, but others believe America is ready to resolve the complications that it’s going through. People say that there will be long-term and short-term solutions included in Obama’s economic plan that will handle the situation. There are others though, that believes Obama’s solutions cannot remove but will only reduce the effect of the unavoidable obstacles that America is yet to go through.

I believe modifying policies particularly research and development subsidies, education grants and worker-retaining funds will improve the country in the long run. Education is one of the economic policies that is worthy of the government’s attention. If workers have enough knowledge and training on in-demand jobs, this would come with up to three decades of gains to America.

Obama’s economic plans contain short term income enhancers. The president has included development of unemployment insurance, support in state budgets and improvement of job opportunities to the people of America. $150 billion is invested in clean energy for 10 years to increase jobs by 5 million.

Motivating business people to invest is not very advisable nowadays.  This would greatly affect the number of jobs that can be available to people.  The pains of the credit crisis that the businesses are caught up with are also felt by their employees. It would be better to keep a limit on federal tax rates and not to make any modification on business policies because it would only worsen the situation.

To top it all off, experts believe that Obama’s economic plan should not limit to physical policies alone. America is in desperate need of hope and inspiration to go through these devastating moments. Giving $500 to every employee is not a very wise move to motivate them to work. The people need great leaders that would serve as role models and would stimulate the people to aspire and reach their goals.

Don’t forget to try the salary calculator if you need help figuring out how much you really make with the new tax brackets.

More Vacation Time – This is probably the first one people think of, and it’s a great substitute. Depending on how vital you are to the day-to-day operations of a business, this one could be extremely viable. This doesn’t have to be a bad deal for the business either. The work can build up while you’re gone and can be finished when you return with little effect on the bottom line.

Health Benefits – This isn’t probably what you’re thinking. Most people think this refers to health insurance, but really it’s more of a “lifestyle” benefit. Whether it’s a gym membership, healthier food at work, or a yoga class at the workplace, this is another bargaining chip that can work for both sides. A healthier, more energetic work force is music to an employers ears so this is one of the easiest perks to ask for if you feel like improving your health on your companies dime.

Schedule Flexibility – Being flexible on your schedule doesn’t necessarily mean that you’d work less hours. Maybe there is a time of day, or a day out of the work that you’d rather do your work and haven’t thought to ask. This is largely dependent on your industry and job environment, but for some people there just isn’t a reason why they have to come in early in the morning or leave later at night than they’d like.

Paid Training – Want to earn more money? Get more training or licenses and be qualified to capitalize on things that you may not be monetizing right now. Asking for your employer to pay for additional training is by far the easiest item on this list to request. Employers will very rarely refuse, and it’s nice to show them that you are a driven and focused employee. We highly recommend this option at any time, even if you’ve recently gotten a raise or asked for something else on this list.

Bringing up a contract negotiation can make the most fearless people sweat. While most people have to broach the subject at some point, they also make a good number of mistakes.

One way to make things a little easier is to make sure the new deal works for both sides. The employer and employee should feel good about the situation at the end of the day as to avoid fighting and awkwardness later on. We will try to explain some pitfalls you can try to avoid when going in for a contract negotiation.

#1 – Not Being Prepared

A lot of people go into a bosses office asking for a raise without knowing what they want, and what they are worth. This is the biggest mistake you can make during a negotiation. If you know what you are worth, the employer will see your confidence and understand that if he or she doesn’t give you the raise, you may be smart enough to move elsewhere. Do a lot of research and if you are being underpaid, GET THAT RAISE!

You will also want to practice your talking points before speaking with the boss. Rehearse like you would for an acting part. This may sound silly, but it could make you a lot of money in the end.

#2 – Factor In Everything

When picking a job, or deciding whether to take another job, you really have to look at a lot of factors. Make sure to think about the cost of living, the commute, benefits, and the work environment. Those probably seem obvious, but a lot of people get caught up on the dollar amount. Often times the lower paying job could be the best option either for your wallet or your happiness.

#3 – Be Decisive

Don’t drag things out. When you have to make a decision, make sure you make it quickly. First of all it can put off the employer if you do take the job, and if you don’t take it, it may put them in a bad position. We aren’t advising to rush a decision, but you should be prepared when you go in, and know the terms you want. If they can’t reach it, don’t be afraid to turn them down on the spot.

These are just a couple of tips I have come across that have been helpful in my own life so hopefully they can help you as well. In future articles we will cover these steps in more detail.

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