Should I take federal taxes in law school?

Do you get money back on taxes for being a student?

The American Opportunity Tax Credit (AOTC) is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. You can get a maximum annual credit of $2,500 per eligible student.

Is there a downside to paying off student loans early?

Paying off student loans early is generally great for saving interest and reducing stress, but it's not always the best move, especially if it means neglecting an emergency fund, high-interest debt, or retirement savings; also, federal loans might offer forgiveness programs, and closing an account can temporarily dip your credit score. Whether it's "bad" depends on your overall financial picture, with low-interest federal loans sometimes better left alone to invest or save, while high-interest private loans might be a priority. 

What happens if I choose not to withhold federal taxes?

If federal taxes aren't withheld from your pay, you'll owe that money directly to the IRS when you file your tax return, potentially facing a large bill and underpayment penalties, even if your employer made the mistake; you must file a return to claim any refund or report income, and if you're self-employed or have other income, you'll need to make estimated tax payments to avoid penalties. 

How much an hour is $70,000 a year after taxes?

$70,000 a year is about $33.65 per hour before taxes, but after federal, state (varies), FICA, and potential deductions (like 401k, insurance), your take-home hourly pay could be closer to $21-$27 per hour, depending heavily on your location and withholdings, with estimates suggesting annual take-home of $43,500 to $52,000. 

How much should I pay in federal taxes if I make $75,000?

For a $75,000 gross income in 2025 (assuming single filer), your taxable income (after deductions like the standard deduction) falls into the 22% bracket, but your actual federal income tax will be around $8,000-$9,000 (plus payroll taxes like Social Security/Medicare), as only portions are taxed at 10%, 12%, and 22%, not the whole amount, with your effective tax rate being lower. 

What is the most overlooked tax break?

The most overlooked tax breaks often include the Saver's Credit (Retirement Savings Contributions Credit) for low-to-moderate income individuals, out-of-pocket charitable expenses, student loan interest deduction, and state and local taxes (SALT), especially if you itemize. Other common ones are deductions for unreimbursed medical costs (over AGI threshold), jury duty pay remitted to an employer, and even reinvested dividends in taxable accounts. 

What is the $2500 expense rule?

The $2,500 expense rule refers to the IRS's De Minimis Safe Harbor Election, allowing businesses (without a formal financial statement) to immediately deduct the full cost of tangible property costing up to $2,500 per item or invoice, rather than depreciating it over years. This simplifies taxes for small businesses, letting them expense items like computers or small furniture in one year if they follow consistent accounting practices and make the annual election by attaching a statement to their tax return. 

Are LSAT fees tax deductible?

Key Takeaways. Fees for college entrance exams are not tax-deductible, but there are other education-related tax breaks available. The Lifetime Learning Credit and American Opportunity Credit can be claimed by eligible taxpayers to reduce taxes owed and possibly generate a tax refund.

Do lawyers make $500,000 a year?

Yes, many lawyers earn $500,000 or more annually, especially Big Law partners, senior corporate counsel, specialized litigators, and successful solo practitioners in high-value fields like IP or medical malpractice, though this is not the norm for all attorneys, with median salaries being much lower. Reaching this income level requires specialization, strategic business growth, marketing, and often working in major markets, with top-tier law firms (Big Law) offering high starting salaries and significant bonuses that can push senior associates past the $500K mark.
 

Has Kim Kardashian taken the LSAT?

Kim takes the California Bar Exam's “baby bar” without completing a bachelor's degree or taking the LSAT. Kim continues to balance her legal pursuits with media and business ventures, using her platform for criminal justice reform advocacy.

What year in law school is the hardest?

Most law students agree the first year (1L) is the hardest due to the steep learning curve, new teaching methods (Socratic/Case Method), intense reading/writing, and high-pressure environment designed to build foundational skills, though 2L brings different stressors like career planning and internships. 1L is a "bootcamp" for thinking like a lawyer with unfamiliar concepts and high stakes for grades, making the transition from undergraduate studies particularly challenging. 

What is $90,000 a year hourly?

$90,000 a year is approximately $43.27 per hour, assuming a standard 40-hour work week for 52 weeks (2,080 hours total). This is calculated by dividing the annual salary by the total working hours in a year ($90,000 / 2080 hours). 

Is a 70K salary rich?

No, $70k a year generally isn't considered "rich" in the U.S., but it's a solid, above-average income that allows for a comfortable middle-class lifestyle in most areas, though it can be tight in high-cost cities like San Francisco or NYC, requiring careful budgeting. "Rich" is subjective, but $70k is well above the national median income, allowing for savings and a decent quality of life, especially for a single person or a household with two incomes. 

What is $40 an hour annually?

$40 an hour is $83,200 per year, assuming a standard 40-hour work week for 52 weeks, calculated by multiplying $40 by 40 hours, then by 52 weeks ($40 x 40 x 52). This is your gross income before taxes and other deductions, translating to $1,600 weekly or roughly $6,933 monthly. 

Is it better to withhold federal taxes or not?

You generally want federal tax withheld to cover your income tax liability throughout the year, avoiding large bills and penalties, but the amount depends on your situation (jobs, dependents, deductions) and should be set via your IRS Form W-4 to aim for close to $0 owed or refunded at tax time. Use the IRS Tax Withholding Estimator for personalized advice, especially after life changes like marriage, new jobs, or having kids, to avoid owing taxes or getting a giant refund.
 

What are common tax mistakes to avoid?

Common tax return mistakes that can cost taxpayers

• Filing too early. ...
• Missing or inaccurate Social Security numbers (SSN). ...
• Misspelled names. ...
• Entering information inaccurately. ...
• Incorrect filing status. ...
• Math mistakes. ...
• Figuring credits or deductions. ...
• Incorrect bank account numbers.

Can I refuse to pay federal income tax?

No, you cannot legally refuse to pay federal income tax; it's a mandatory obligation under the Internal Revenue Code, and attempting to evade it can lead to severe civil and criminal penalties, including hefty fines, interest charges, property liens, wage garnishment, and even imprisonment, as the IRS views such refusal as tax evasion, a serious federal crime, despite arguments about policy or the Constitution. 

Why shouldn't you rush to pay off student loans?

You pay a higher interest rate on future loans

If you pay off your low-interest loans early and then borrow money for some other purpose, you will pay a much higher rate of interest. In this case, early payment on your student loans will result in you losing money.

What is the smartest way to pay off student loans?

The best way to pay off student loans involves a mix of strategies: paying more than the minimum, using the avalanche (highest interest first) or snowball (smallest balance first) method for extra payments, refinancing for lower rates (if you don't need federal benefits), exploring income-driven repayment (IDR) plans for affordability, increasing income/decreasing spending, and utilizing loan forgiveness programs like Public Service Loan Forgiveness (PSLF). Automating payments can also earn small interest rate breaks and prevent late fees. 

How does Dave Ramsey say to pay off debt?

Dave Ramsey's debt payoff strategy centers on the Debt Snowball method, a behavioral approach focusing on paying off debts from smallest balance to largest for motivational wins, combined with strict budgeting, cutting expenses, increasing income, and eliminating new debt, all part of his broader 7 Baby Steps plan, particularly Baby Step 2. The core idea is that behavior (80%) drives finance (20%), so small wins build momentum to tackle bigger debts, rather than focusing solely on high-interest rates.