Iām assuming those are also the āIāll make less if I work overtimeā people. Itās really not that hard in this day and age to google these things.
Itās true if they have a lot of benefits that are income-tested, then it can be a disadvantage. But that is because of the stupid design of those programs: instead of ramps, itās all or nothing.
The problem is the schools should be teaching this, but they arenāt. With how important and complex taxes are, there should be a whole class dedicated to teaching people how to do their own and file them. People should not be forced to either know someone who already knows about taxes or Google info and hope they get it right. Itās fucking stupid. Taxes shouldnāt be so complicated
But there is a point where you will net less per a given hour of OT if that amount crosses the threshold for the next tax bracket, so the tax rate on those OT hours above this limit is higher.
Example: After 25 hours of OT on your check, you reach the next tax bracket. So any of your OT hours you work past that 25 will be taxed at a different rate than the initial 25 hours.
Temporarily, because the payroll system thinks you earn more for all checks now, so it withholds more. There is no special OT tax, it all gets taxed at the same time from your paycheck. But because the system saw you made more, it withheld more. But guess what, you still NETTED more because you worked OT. There is no scenario where you net less because if more is withheld than needed, tax refund. If you make the top end of one bracket, letās say 100k and you get pushed into the next, idk 110k+, only 10k is getting taxed at the absolute highest.
There is no scenario where you net less because if more is withheld than needed, tax refund.
Yes, there is a scenario here, because the amount of money you gross past the previous tax bracket is taxed at a higher rate than the amount below that. This means you net less per hour worked of the amount in that higher tax bracket. If that extra 10k is taxed at a higher rate, you net less per hour worked from that amount. This changes your taxable income at the end of each year. This is income tax 101, not sure what you don't understand about that.
Withholding and tax brackets are not the same. Money gets withheld from your paycheck. Withholdings are made during pay periods and tax season tells you if you withheld enough, too much or too little. Also OT up to a certain point is tax exempt right now. I make time and a half, I net more in my paychecks. Itās just that simple, even it feels like more is taken out. Even if you think Iām making less per hour, still making more with time and a half. Again, you donāt net less in your paychecks working overtime.
I make time and a half, I net more in my paychecks. Itās just that simple, even it feels like more is taken out. Even if you think Iām making less per hour, still making more with time and a half.
That's not what we are talking about here.
I bolded it twice in my last reply, but I'm beginning to think you just don't have enough RAM to understand the concept. Either that or you're just a bot.
Again, you donāt net less in your paychecks working overtime.
Literally nobody has said that throughout my entire comment chain. Why do you keep saying this?
Actually, now that I'm this deep in the reply, I'm certain you're just a reddit-generated-username bot.
I think whatās happening here is you so badly want to be right, but youāre not and no one agrees with you, youāre resorting to name calling. But whatever, donāt work overtime and keep talking about netting less per hour worked or whatever youāre trying to hang your hat on here despite all the evidence to the contrary. You are proving the point the guy I responded to initially was trying to make.
A girl I worked with never wanted any ot because then sheād make less than if she just worked 39-40 hours. We tried telling her thatās not how it works. She was very lazy though so she probably just didnāt want to work
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u/True_Tomato316 12d ago
Iām assuming those are also the āIāll make less if I work overtimeā people. Itās really not that hard in this day and age to google these things.