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Messages - paul1454

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Choosing the Right Law School / Re: How late is too late
« on: April 27, 2007, 08:20:18 AM »
ooooohhhhhhh, he burned you  ;) [insert foot in mouth here]

Law School Admissions / Re: Accounting or Law
« on: April 20, 2007, 10:38:36 PM »
Depends on the state.  I know Kentucky has only a 2000 hour experience requirement while Florida does not have one at all. 

Choosing the Right Law School / Re: Most lucrative and prestigious law
« on: April 18, 2007, 02:05:10 PM »
In New York City, there is a 40% tax on all bonuses. I have no idea how it is in other states, I thought it was a nationwide thing.

The highest tax rate in new york state is 7.7% (if you make over $500,000).  If you live in NYC you ALSO must pay city income tax which is 3.648% (if you make over 50K, 90K if you are married). 

Assuming you are making over 336,550, I agree you would be subject to over 40% tax on your bonus, actually 46% (and all other income for that matter).

But for the rest of us, we may have 40% WITHHELD, but you will not necessarily owe 40% come tax time.

EDIT: I hate hijacking this thread and I'm sorry for causing this off-topic debate.  If you still disagree PM me and we can talk about the topic there. 

Choosing the Right Law School / Re: Most lucrative and prestigious law
« on: April 18, 2007, 01:36:24 PM »
Bonuses are included in box 1 of your w-2 (wages, salaries, tips, etc).  When you file your taxes, the information in box 1 is carried over to box 7 of your 1040.  That (along with all the adjustments in-between) are carried down to box 43 on the form 1040. What shows up on line 43 is all taxed at the regular tax rate (35% max for federal, 9.3 max for state of California), bonuses included (less any capital gains which are subject to reduced rates).  I am certain California is no different.  I finished preparation a California resident's return last week at the office with no difference (his state return treated the income identically to that above). 

PS.  You have to make at least $336,550 to get taxed at the maximum tax rates (unless you are married filing separate).

Choosing the Right Law School / Re: Most lucrative and prestigious law
« on: April 18, 2007, 01:27:28 PM »
They are in California at least. They are taxed at a higher percentage than regular income.
More is WITHHELD from your paycheck because the bonus temporarily puts you in a higher income bracket.  However witholding and the actual taxability of the income is two different things. When you file your taxes and calculate your tax liability, bonuses are treated EXACTLY the same as ordinary income.  Therefore if too much was withheld initially, it will get refunded back to you (or if not enough was withheld you will end up owing tax because of the bonus). The federal and state governments do not have separate tax rates for bonuses. 

Choosing the Right Law School / Re: Most lucrative and prestigious law
« on: April 18, 2007, 01:18:56 PM »
My friends who are working at i-banks joke that they work eight days a week. In a way, it is true. I have a good friend working at a small i-bank in NYC and had to go home to Hartford for a funeral one Saturday...she had to borrow her bosses laptop to do work on the trainride. I-Banking is perhaps one of the only jobs that makes being a corporate lawyer look easy. In addition, base salaries are often low, especially for associates ($55-$65k, which is nothing in NYC). The real money comes from bonuses which, while often high, are taxed 40% to 50%.

Bonuses are treated no different than ordinary income for tax purposes.

Choosing the Right Law School / Re: Tier 3 vs. Top 25
« on: April 18, 2007, 01:09:01 PM »
Could you postpone law school until his grad school is complete?

Visits, Admit Days, and Open Houses / Re: UTK - Tennessee
« on: April 16, 2007, 07:45:32 AM »
For anyone interested, apparently their is a facebook group for this falls incoming class.  "Tennessee law class of 2010"

It only gets worse once school starts!

If this is the case, my SO will be leaving me!!!!

Incoming 1Ls / Re: Bipolar Disorder; Coping in Law School
« on: April 14, 2007, 10:18:40 AM »
Haha, allow me to respectfully withdraw my distasteful statement.

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