No. of Recommendations: 1
Thanks Decath and Saydiver,

With the new info you've both graciously provided, I'm now trying to determine if the increased potential of 401(k) contributions (and pay) offset the increased self-employment taxes and loss of 401(k) matching. This is making my head spin! I need a worksheet!

Decath, I did consider the possibility of other writeoffs, but I'm afraid we wouldn't realize much.

Home office - we don't have a separate space, nor is his primary place of business our house. He'd be working at the company, so I don't think we'd qualify.

Office equipment/computer - he'd be working on the computer at work. don't really anticipate any work from home.

Internet connection - Again he'd be working from work and my usage of the DSL for "fun" (!) I think would negate this.

Travel - none anticipated.

Car depreciation - we only have one vehicle. He drops me off to and from work. On the odd day he has to work late and I don't, the $10 cab ride home for me saves on the 2nd car payment, insurance, personal property tax, and license and maintenance. :)

And, yes, as DINKs we get murdered by the taxman. And, if he gets this position, it'll only get worse - the lower amount is a 50% increase in his pay. (Of course, there are worse situations to be in, eh? :))

We do itemize, but with the mortgage just 11.7% of our existing gross, we just barely make it over the threshhold where it's more advantageous. What concerns me is that we are inching ever closer to AMT. This may put us over the top. I can't remember - does AMT negate the pluses of the 401(k)?

Like I said, I'm approaching Exorcist territory, here! (head spinning reference :))

Does anyone have a link to a tax calculator where I could do a comparison? All of the ones I'm finding are to estimate taxes owed for 2004 assuming mid-year timing. I'd just like one where I could input all the numbers from scratch and see what the estimate for the year are each way. Maybe my 2003 Trubotax has this. I'm going to check.

I really appreciate all your help and the added things for me to consider. Access to the knowledge of the posters on the Fool is invaluable.

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