Monday, October 22, 2012

Tax Man Leaveth

I've been day dreaming a multi-part posts about differences from Big Firm law and In-House. But screw cohesion and detail.

Here's one benefit: Taxes.  Husband asked me to send him a paystub so we can make sure we are handling our withholding properly (my first full tax year on an in-house salary). I took a HUGE paycut to move in-house. Big enough that I would worry about what I was doing even though it was totally the right call and the hope is I get back there someday.

In any event, Husband noted that our tax liability is now half from the prior year even though his income is unchanged. Just goes to show how that "additional" Big Firm income benefitted Uncle Sam as much as the Esqs.

It also perhaps speaks to incentives - if you do your math and realize that for every dollar you're taking home $1 minus X then maybe making a move in-house should be a little less frightening. Or perhaps since it was inevitable in my case - more justifiable.

We'll leave the real tax incentive debate to Obama and Romney. :)

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