Bye bye Inky :(

ChrisSlicks · 03-07-2011, 12:47 PM

Quote:

Originally Posted by ImportConvert

My problem is work. I only work 3-4 days a week, and if I picked up OT, it would bump me into the next tax bracket just BARELY unless I picked up a TON of OT to get into the meat of that bracket. Basically, I can work what I work now, or work a little more and make nothing for it, or work 6 days a week and make a bit more.

I'll just be bored at times, lol.

Tax brackets don't work that way. You're not going to lose out because you go into the next bracket by $1000, only the portion that falls into that bracket gets taxed at the higher rate.

Let's say you earned $35000, the first $34000 would be taxed at 15%, the last $1000 would be taxed at 25%. Sure, you getting 10% less out of the extra work that puts you over but it's not like your ever going to lose money by working more.

Tax brackets explained
Tax rate calculator