Economic Reality
This is an email I just sent to my ex in regards to how making the comment that I make $20K more then her implying that I make _so_ much money.
Donna,
In regards to your comment the other day in which you stated that I make $20K more then you. This is a break down on the finances to show that in actuality that there is not that big of difference between us. I have had to guestimate the yearly salaries since I have taken two pay cuts this year and if I remember correctly, you got a pay raise.
Current Estimated Yearly Income
Alan: $64K
Donna: $45K
Amount Paid in Child Support per Year
$7.2K
Alan: $56.8K
Donna: $52.2K
Income Adjusted due to Taxes:
On the $7.2K income loss for me I still have to pay taxes on that portion while you do not have to pay any taxes on it.
$7.2K * 30% tax rate (not sure what rate I fall in) = $2.16K
Alan: $54.64K
Donna: $52.2K
Income Adjusted Due to Tax Credit
Before we use to share the tax credit so it was a wash. However, we have agreed that you should get a tax credit every year in essence boosting your income since you get money back from taxes. Current tax credit is $1K until 2011.
Alan: $54.64K
Donna: $53.2K
According to my calculations there is only a slight difference between our two incomes.
Donna,
In regards to your comment the other day in which you stated that I make $20K more then you. This is a break down on the finances to show that in actuality that there is not that big of difference between us. I have had to guestimate the yearly salaries since I have taken two pay cuts this year and if I remember correctly, you got a pay raise.
Current Estimated Yearly Income
Alan: $64K
Donna: $45K
Amount Paid in Child Support per Year
$7.2K
Alan: $56.8K
Donna: $52.2K
Income Adjusted due to Taxes:
On the $7.2K income loss for me I still have to pay taxes on that portion while you do not have to pay any taxes on it.
$7.2K * 30% tax rate (not sure what rate I fall in) = $2.16K
Alan: $54.64K
Donna: $52.2K
Income Adjusted Due to Tax Credit
Before we use to share the tax credit so it was a wash. However, we have agreed that you should get a tax credit every year in essence boosting your income since you get money back from taxes. Current tax credit is $1K until 2011.
Alan: $54.64K
Donna: $53.2K
According to my calculations there is only a slight difference between our two incomes.