381–390 of 487 posts
What happens if family earns $200,001 ? Follow up question - what is a “family” here? A single parent with 3 kids? A married couple with one child?
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And after paying insurance?
To throw in a data point on this for reference, as an American I pay around ~$220 a month (~$2,640 per year) on health insurance through my job, this comes out of my pre-taxed income. While I won't get into specifics on the details of the terms, I am quite happy with it. I work in Massachusetts, but I live in New Hampshire. I pay more than double this on both Social Security fees & Massachusetts income taxes, which a…
Having just filled my annual benefits selections tonight, here's my data point: health insurance is $3000/month on the company plan (36K/year).
Yes, the company "pays" for a percentage of that. But of course the entire $3K/month is part of my total compensation cost to the company. If healthcare wasn't so ludicrously expensive in the US, they could afford to pay me more, instead of funneling all this money to insurance company profits.
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From what I've observed (worked at a few small businesses before I got an office IT job, and even then...) it's about figuring out enough 'fringe benefits' and/or 'explanations' that are plausible with your CPA. e.x. how many profitable company car buy/leases can you do, a good explanation of why you are saving that money as a small or privately owned company (i.e. saving for expansion via acquisition/etc, but you ha…
CPA is not a great TLA as isn't global.
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As an owner of a small family business, I have to pay close attention to making sure my salary and that of my other family members involved is "generally commensurate with our duties" or the IRS will be up my backside pretty quick. I obviously try to minimize it as much as possible, but if you drop it to something insignificant and the IRS notices, they'll adjust your income and expenses reported to reflect your non-…
As a former owner of a small business I can tell you that what my accountant told me about that is that as long as the salary is over the Social Security max, (which is about $160K) the IRS doesn't really care.
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I can understand why they might do this. Many people who own a small business underpay themselves significantly and use the extra funds on the business to build up assets. This defers taxes and allows the funds to be reinvested without tax. They might even take out loans on those business assets. The same way the wealthy will pay themselves a tiny salary and just live off the asset value of their stock. Someone who o…
> This defers taxes and allows the funds to be reinvested without tax. All business funds are re-invested without tax, this is actually a good thing. Also for the majority of business owners taking a loan against your assets to pay yourself is a terrible idea, yes it may defer taxation but that tax will still come due and now you have to pay interest. > Someone who owns their own business could also easily drop their…
Paying tax and investing in your kid is also a good thing. Putting your income into the S&P 500 is also a good thing, but being wealthy enough to do so should exempt your children from this subsidy
This is a great step in the right direction. I can't speak directly for MIT, but there are issues with how these programs don't apply to parents with small family businesses. My parents had a small business, with my father taking home a salary of $XX,XXX. Duke University used the business assets to determine the EFC (expected family contribution) of literally 90% of the salary. Essentially saying to sell off the fami…
If your parents run a struggling corner store then you should be eligible, but if they own a successful chain of stores, maybe not.
Why not just say Income of 200K, or if you own a business then income + pre tax profits <=200K and book assets <500K or something?
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I found this on Google: > According to ZipRecruiter, the average salary for a professor at MIT is $114,792 per year, with a range of $94,500 to $179,500. And: > A professor's salary at the University of Oxford can range from around £89,429 to £122,261 per year, with an average of £104,347 The average at Oxford is much higher than MIT. Note: GBP to USD is currently 1.27
According to the sister comment to mine, Oxford pays only professors well, and everyone else quite poorly. There's a lot more to a university's staff than just the professors.
When I worked in UK academia the hierarchy for permanent academic posts was something like: lecturer, senior lecturer, reader, professor.
This is a great step in the right direction. I can't speak directly for MIT, but there are issues with how these programs don't apply to parents with small family businesses. My parents had a small business, with my father taking home a salary of $XX,XXX. Duke University used the business assets to determine the EFC (expected family contribution) of literally 90% of the salary. Essentially saying to sell off the fami…
Why are such things in the US so complicated? Where I live, studying is much much cheaper for most professions,for everyone! That's the only fair way. Also, a set of well educated people pays itself back later in the form of mostly income and added value taxes, which provides money to keep studying for cheap for the next generation.
What happens if family earns $200,001 ? Follow up question - what is a “family” here? A single parent with 3 kids? A married couple with one child?
Why don't they determine aid with a formula, instead of using these thresholds that set up weird incentives? (Same question applies to tax brackets)