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> On the other had, she has ended up going from $30K/year to about $50k/year and is paying $5000 per year towards her ISA. So her income went up by $20K and she
by baobabKoodaa 5y ago
> On the other had, she has ended up going from $30K/year to about $50k/year and is paying $5000 per year towards her ISA. So her income went up by $20K and she's keeping $15k of it. That's a pretty big win - so six months of school, increase in net income of 50%. Not bad.
That's 50% increase in gross income, not net income.
- indymike 5y agoMinor nit $20k is the gross income so $15K is the net. $15k is 50% of $30k.
- baobabKoodaa 5y agoNo. $20k is the gross income. Then you deduct ISA payment $5k and you get to $15k. Then you deduct taxes and you get to X. X is the net income. X is lower than $15k. Therefore, the net income does not increase by 50% in this example. The net income increases much less than 50%.