Career and Life Planning Workbook for Medical Residents

86 WWW . A D V E N T U R E S I N M E D I C I N E . C O M Line 1: Estimated Annual Salary: + Line 2: Sign-On Bonus + * The sign-on bonus should not be considered a recurrent item when budgeting for future years. Line 3: Loan Repayment (Year 1): - * Loan Repayment, if provided by employer, will most likely be taxed as income. Line 4: Pre-tax Retirement Contribution: +/- * Saving at least 10% (up to 20%) of income for long-term retirement savings is reasonable. Line 5: Other: = Line 6: Total Taxable Income: Exercise: Calculating Income After Taxes. Pay the “Piper” and plan your budget. <UKLYZ[HUK OV^ [H_LZ PTWHJ[ `V\Y JHZO ÅV^ HUK OV^ [V LZ[PTH[L `V\Y PUJVTL after taxes, so you’ll have a solid foundation when budgeting for your mortgage, car, emergency savings fund, living expenses, and investments. OBJECTIVES: By the end of this exercise you will be able to Learn how to estimate your taxable income. You will: • Learn how to calculate federal tax liabilities and state withholdings to estimate their take-home pay. HOWTO USE THIS TOOL INSTRUCTIONS <ZL [OPZ [VVS [V LZ[PTH[L `V\Y [HRL OVTL WH` ^OLU JVTWSL[PUN `V\Y I\KNL[ WYVQLJ[PVUZ PU , ; OPZ ^PSS HPK `V\ PU HZZLZZPUN LHJO VќLY `V\ YLJLP]L 4VZ[ YLZPKLU[Z ^PSS X\HKY\WSL [OLPY PUJVTL PU [OLPY ÄYZ[ `LHY VM WYHJ[PJL W\ZOPUN [OLT PU[V OPNOLY [H_ IYHJRL[Z >P[O [OPZ worksheet you can estimate your income after taxes, which will help you create a more-realistic budget for your mortgage, JHY LTLYNLUJ` ZH]PUNZ M\UK PU]LZ[TLU[Z HUK SP]PUN L_WLUZLZ )LMVYL `V\ THRL HU` THQVY ÄUHUJPHS KLJPZPVUZ OV^L]LY `V\ ZOV\SK JVUZ\S[ ^P[O H ÄUHUJPHS WSHUULY VY *7( CHAPTER 9 Finance Basics Step 1: Estimate Your Annual Taxable Income budget projections in E-29.