How different is making $1m as a W2 vs as an equity partner considering self insurance payment, taxes and other items?

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It’s a big difference, but it depends on what you are responsible for paying for vs having to pay income on it. Some firms have you pay full price for medical insurance, so your out of pocket is still significant even with a tax deduction. Same applies for no firm match for 401k, paying self employment taxes, no commuter benefits, allocation of income to multiple states as opposed to your resident state, and more.

A big deal was PTE which allows you to get a federal deduction for state taxes paid, so you aren’t limited to the 10k cap. That’s only possible for an equity partner and not a W-2 which swings the scales a bit.

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Is this why my camp seems to be less than that at big 4 after the SALT tax changes? (From a rich state targeted by prior administration)

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On a total dollars basis, it depends what states you’d be getting K1s in vs where you’re getting W2s, but in most cases it’s not hugely different — a few to several points on your income.

From paperwork basis it’s hugely different. My tax return is like a phone book.

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