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jh937hfiu3hrhv9 t1_ja8inm2 wrote

What work do you do? I have never known anybody to get pay raises like that.

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sea_dev OP t1_ja8l4ll wrote

I'm a software engineer, but all of my pay raises are from changing companies.

  • I started 2012 working a part time job that would turn full time when I graduated, but I left for another job paying more when I graduated. ($65k salary)
  • In 2013 I left that job and moved to Seattle to work for a large software company. ($100k salary)
  • In 2017 I left that software company for another one. ($135k salary)
  • In 2018 I left that one for another company ($165k salary)
  • In 2022 I left that one for another company ($205k salary)

Every time I switched I also received signing bonuses and every job gave me stock bonuses to supplement my salary.

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jh937hfiu3hrhv9 t1_ja8lo7x wrote

Too bad other industries are not so flush with cash to dole out.

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5th_degree_burns t1_ja8khck wrote

May be positional changes. I took a job on a help desk to get into the company I currently work for. First positional change netted me an extra 40k, last one was another 80k. The best way to get a 'raise' is usually to move your way up or change employers. At least in the US.

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jh937hfiu3hrhv9 t1_ja8lshd wrote

In what industry?

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5th_degree_burns t1_ja8mspx wrote

I started in IT and moved into our RnD dept. I'm a cloud infrastructure engineer/devops engineer.

EDIT - looks like OP and I are in similar-ish fields and they have a similar experience. It does kind of suck, but it is what it is.

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jh937hfiu3hrhv9 t1_ja8n6ag wrote

Too bad other industries are not so flush with cash to dole out.

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5th_degree_burns t1_ja8o5qq wrote

The sad thing is that a lot of other industries are making money hand over fist and simply don't pay. I work for a corporate entity that (comically) isn't bad in regards to executive comp vs employee comp, and our CEO still makes 134 times the median salary. I think the US national average in that stat was that CEOs make 399 times the salary of the median employee. That's fucked up.

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DoeCommaJohn t1_jacjmr8 wrote

If you job hop, you can make a lot more (on average, 50%, meaning lots make more) money than staying with the same company, so it’s not crazy to think somebody could see this kind of raises

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forengjeng t1_ja8eetv wrote

How do you pay so little in taxes? If this is normal I can see why all public systems in the US are going to shit

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sea_dev OP t1_ja8j7yg wrote

That's just how progressive tax brackets work. For example, the 2022 brackets for married filing jointly are:

  • 10% on income up to $20,550
  • $2,055 + 12% on excess income up to $83,550
  • $9,615 + 22% on excess income up to $178,150
  • $30,427 + 24% on excess income up to $340,100
  • $69,295 + 32% on excess income up to $431,900
  • $98,671 + 35% on excess income up to $647,850
  • $174,253.50 + 37% on excess income

So for 2022 my taxable income was $278,077 and I only took the standard deduction of $25,900. I also had 401k contributions throughout the year, but I hadn't included any of those for previous years "total income" figures in the graph. So my federal income tax that I owed was $54,409 ($30,427+0.24*[278,077-178,150]). But I got to claim $6,000 with the child tax credit, reducing that to $49,055 (nearly a 10% reduction).

Also, our government subsidizes married couples and families. Married filing jointly tax brackets are much lower than individuals and the child tax credits don't start to fall off until I think around $400,000 household income.

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pulchritudinouser t1_ja941b4 wrote

I’m single with no kids living in a state with super high taxes , my tax rate would make you cry

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derfury t1_ja8lbr3 wrote

Yup my tax rate is more than double at every sample in this graph lol (I’m in Canada)

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paleofagua t1_jab0qwm wrote

I wonder if he’s only considering the federal income tax in his “effective” tax rate. There are others outside those included in that bracket like state and FICA.

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sea_dev OP t1_ja8bv6t wrote

Source: My tax returns

Tool: Google sheets

My effective tax rate was calculated by simply dividing the total amount I paid in taxes by my total income. I filed as married each year and we had kids in 2011, 2013, and 2017. My wife and I both graduated college in 2012 but she has stayed home with the kids since the first one was born. She returned to work for the last 3 months of 2022.

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Belnak t1_ja8tl07 wrote

The standard deduction is what the government expects someone making the median income to have as legitimate non-taxable expenses. If you're making >$300k, your legitimate deductions are likely multiple times that amount. Talk to a tax lawyer (not an accountant). It hurts to see someone just voluntarily forking over their rightful income to the government. If you're doing it out of benevolence, there are likely charities that directed contributions to can provide far more efficient use of the funds.

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tristanjones t1_ja9ebfz wrote

Making more money doesnt really mean you'll have more deductions. There arent too many deductions someone who isnt close to retirement would likely be taking. If you have student loans, alimony, and a mortgage, or also some kids, then it could add up, but you dont have to be making a lot of money for most of those to be true. Even with some mortgages with the low interest rates until recently, the standard deduction may be more in some cases.

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sea_dev OP t1_ja8xpbl wrote

Schedule A is the form you use to figure out your itemized deductions, I worked through all of that and it was less than the standard deduction. The real limiting factor is that state and local taxes are capped at $10k. If I had made more charitable donations, I would have been able to have more deductions, but at the end of the day, that's still more money out of my pocket.

EDIT: Only medical expenses over 7.5% of your income is deductible and the interest I pay on my home isn't enough to eclipse the standard deduction.

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