My tax burden has actually gone down this year because of deductions that come with becoming a full-time teacher. Federal taxes are kinda annoying, but for the most part I pay more to the state.
For my teaching job I make about $48,000 gross income. I make a few thousand extra tutoring, running a side business, and odd things I do over the summer, but those earnings fluctuate between $5,000-$15,000 each year so I'll ignore them.
6.2% of it goes towards my pension plan. The state and my district cover the other half. So I put in $3,000/year and will eventually get at least $6,000.
I pay Medicare payroll (1.45%) like everyone else and count this as mostly a loss since that program is riddled with problems. But my pension plan is probably the biggest perk outside of health insurance.
For deductions:
- $3,800 Personal Exemption
- $3,000 Pension Contributions
- $3,000 Sales Tax
- $250 teacher supply deduction. Sounds like a gimme but I usually spend over $1,000 because I try to keep my labs interesting. For chemistry I want to incorporate a breathalyzer lab, poisonous food lab, and zombie apocalypse lab. But here's where it gets interesting...
- $1,000 for charitable donations. If I open up the supplies to other teachers in the school, it counts as a charitable donation.
- $1,000 teacher continual education reduction/certification tests
- $500 odd deductions like postage, transportation, etc. that most people don't consider.
So I have nearly $15,000 in deductions vs before where I had to file standard deduction. And for my tutoring money, I can deduct traveling expenses. I plan to purchase a house next year and will pretty much count another $10,000 in interest and property tax. I will be paying less than 10% towards the feds - virtually the same amount my friends make working full-time at Lowes for less than half the salary. Our system is truly messed up, and I'm the benefactor.