that is another reason why you should max out your 401k and IRA's if possible.The more overtime you have on a paycheck, the higher your tax rate will be. You're actually making less per hour, with overtime included, the longer your week is.
Take a week's net dollar amount. Divide your total deductions (fed, state, FICA, Medicare) by your net total. If your hours were low, (40/45) say on a vacay check, the percentage might be as low as 32%, depending on your particular W4 deductions.
Now, compare that to a 50/55/60 hour check and you'll see that percentage, that goes to taxes etc., climb higher with each OT hour you work. Yes, you'll make more money, but as you do, Uncle Sam is also getting an increasingly higher amount away from you.
So, if your peak check is $200 higher, your taxes are probably increasing by $150 at the same time. Working over 60 hours, just to get kicked harder in the nuts. Screw that.
The more overtime you have on a paycheck, the higher your tax rate will be. You're actually making less per hour, with overtime included, the longer your week is.
Take a week's net dollar amount. Divide your total deductions (fed, state, FICA, Medicare) by your net total. If your hours were low, (40/45) say on a vacay check, the percentage might be as low as 32%, depending on your particular W4 deductions.
Now, compare that to a 50/55/60 hour check and you'll see that percentage, that goes to taxes etc., climb higher with each OT hour you work. Yes, you'll make more money, but as you do, Uncle Sam is also getting an increasingly higher amount away from you.
So, if your peak check is $200 higher, your taxes are probably increasing by $150 at the same time. Working over 60 hours, just to get kicked harder in the nuts. Screw that
It's only temporary and I know that you know this because you've posted that before.
Exactly, it decreases your adjusted gross income ($78,000 becomes $60,000, after contributing the full amount of $18,000 for example). Your tax bracket will be less in retirement.
I clear roughly 25 bucks of every hour at time and a half. 55.33 hours $1317.79. 56.71 hours 1356.99
In the long run you'll pay in taxes what you should pay in taxes.The more overtime you have on a paycheck, the higher your tax rate will be. You're actually making less per hour, with overtime included, the longer your week is.
Take a week's net dollar amount. Divide your total deductions (fed, state, FICA, Medicare) by your net total. If your hours were low, (40/45) say on a vacay check, the percentage might be as low as 32%, depending on your particular W4 deductions.
Now, compare that to a 50/55/60 hour check and you'll see that percentage, that goes to taxes etc., climb higher with each OT hour you work. Yes, you'll make more money, but as you do, Uncle Sam is also getting an increasingly higher amount away from you.
So, if your peak check is $200 higher, your taxes are probably increasing by $150 at the same time. Working over 60 hours, just to get kicked harder in the nuts. Screw that
I really hate this saying , it might be true if you got kids but if you don't you are screwed during the year and when you do your taxes
You over paid by $1200 so you got that much back at the end of the year...
I understand not wanting to work so many hours but using taxes as an excuse is just ignorant.
Your taxes don't magically increase that's the point. You'll get back anything you overpaid because of a few big paychecks.
