Whatever benefit value, remember to gross-up for taxes
by fortune_smith (2021-04-17 05:59:19)
Edited on 2021-04-17 06:02:27

In reply to: ND Scholarship Athetes - Benefits guesstimate  posted by sdalenberg

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People who pay do so with after-tax income, whether they’re paying in real-time or with proceeds from after-tax investments they made in 529 plans many years ago.

So paying, say, $80k for a given year actually requires $120-130k of pre-tax earnings before taxation at 30-something percent, depending on tax bracket.

The benefits received are a form of “net” compensation and have a pre-tax-equivalent.

you mean
by tpm81  (2021-04-17 14:05:22)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Reply to Post

...a penny saved is actually 1.5 pennies earned?

Effectively, yes, maybe even more ....
by fortune_smith  (2021-04-17 15:18:17)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Reply to Post

depending on tax-bracket and the direction of tax policy in coming years .... and definitely a lot more for denizens of NY, CA and a few other high-tax states .... where it's more like a penny saved is AT LEAST two pennies earned.

And it also means that #NotNCAAProperty, which I am grateful that no ND athlete has donned to date, is "earning" at least 50% more than acknowledged, if the high value of the scholly is even acknowledged at all.