Watch your income and how you pay taxes, less can be more

[madville]

Just wanted to share some experiences over the last 5 years with taxes and income. I was single during the 2006-2009 tax years, I made about $48,000 gross per year and was technically working in Georgia so I had to pay their state income tax as well. For 2010, I was now married and made about $36,000 gross in Florida.

It broke down like this:

2009 and a few previous years - single in GA
$48,000 gross income
$5,000 paid in federal taxes
$2,000 paid in GA state taxes
$3,200 paid to social security and medicare
Net take-home pay: $37,000


2010 married with two dependants to claim
$36,000 gross income - no income for the wife, takes care of the kids
No state income tax in Florida
Had $3,000 withheld but received a refund for $7,800 = net +$4,800 with credits
$2,400 to social security and medicare
Net take-home pay: $38,400

I actually took home more money making 25% less and qualifying for the EIC, living and working right across the state line, and having more credits. Just throwing this out there so others might evaluate what they are doing and where they live, it could be working for you or against you.