BUDGET PROJECT: Death and Taxes

• Now that you have your monthly income before taxes you need to adjust your income to reflect what is called you "take home pay," or earnings after taxes. You will need to use your anticipated incomes to calculate your Federal and State taxes.

       1. FICA (Federal Insurance Contributions Act) Tax is 6.2% of you monthly income

           Monthly Income $_________________x  .062= Monthly FICA Contributions $_________________

       2. Medicare Tax is 1.45% of your monthly income

           Monthly Income $_______________x .0145= Monthly Medicare Contributions $________________

Adjusted Net Income ("Take Home Pay")

Anual State Tax Burden $___________________________ + Annual Federal Tax Burden__________________________________

= Annual Combined Tax Burden $_____________________________________

(Annual Gross Income $___________________) - (Annual Income Tax Burden______________________) =

Net Income $_________________________/ (12 months) = Monthly Net Income $________________________

Month Net Income $_______________________ - FICA Contributions $_____________ - Medicare Contributions $_______________________

= Net Income $_________________________________________