Take home pay on $1000 gross wages?

What is this free stuff I alway hear talked about? The only free stuff I remember was govt cheese back in the 70's. And they only gave that away cause they were paying the farmers to not to grow. In order to keep inflation in check.

 

Let me take a crack at what per diem is. lets say you are driving for a carrier and making 45 CPM. Some carriers give you an option to and some force you to allow them to call say 20 CPM of that a per diem. this means your "earnings" is only 25 CPM NOT 45 CPM. You pay taxes on the 25 CPM. this also means Social Security taxes as well. Some drivers like it, some hate it. I have heard good arguments pro and con. Now following this lets look at the numbers. This means you drove 2,222 miles. So of that $1,000 only $555.56 is now taxable. The $444.44 is not.

My numbers are only an example.

 

At the end of the year do you still owe for the other $444 or is that nontaxable income?

 

You don’t owe or pay tax on the per diem portion because as far as the irs, ssa, lenders, disability and unemployment, it was never earned income [wages]. It has pros on one side and potential negatives on the other side, later down the road.

 

Personally, I do $50/chk to HSA, then $320 for benefits, 6% to 401k, $150 or so to taxes. I’d prob net like 475-500

 

If he makes a 50% 401k contribution ($27k yearly max). He then has $5.56 taxable income. Qualifies for food stamps, free health coverage, free mental health, free dental, government subsidized housing, and a free Obama phone.

 

Not to hijack the thread, but what is the most one could contribute to a 401k in a year? I thought there were limits but can't remember what they were.