Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I don't know about anyone else -- but for me, it's always worth it money wise to work OT. I always see the difference in my paycheck.
Now whether I want to work it, and it's worth it to give up MY FREE time, or I feel like doing it knowing I have to look at my coworkers for an additional day of shift, is another issue, But as for money -- no doubt, I see the increase.
Why the anger ? Why all the judgement ? I am not your enemy, whats up ?
Perhaps it was the way in which you phrases or positioned your issue. Doesn't mean any perceived anger you feel is warranted, but that could be the spark.
Quote:
My wife and I grossed 185k last tax return. We got back less then a thousand between State and Federal. If we earn more doing OT we will likely owe a few thousand. Sure we would make more overall money. Yet, then have a tax bill and have to pay in a big chunk. Anyone in that same boat ? Feels like getting a moderate raise or working OT is not worth it. Might be best to work credit hours and take days off.
1) Why would you have to pay it in a big chunk? Even if you do think you might swing from getting refund all the way up to owing a few thousand, you can always adjust your withholding if you think it might help.
2) You make a lot more than some people -- likely many people -- on this board -- so, no, there may not be many people who can identify with the way you posited the question.
3) You add another wrinkle by saying it seems like working OT isn't worth it, seeming to mean the money isn't worth giving up your time -- away from family or whatever else you could be doing. THAT has nothing to do with whether you might pay more in taxes….when of course if you make more you'll pay taxes on that money and still be left with more than if you hadn't worked the OT
If you aren't sure whether YOU think for YOU, that the OT money is worth going into work, instead of taking 'comp time' -- and wondered if other could relate -- then the tax issue seems irrelevant.
That said…I will say I am blessed enough to not need to work OT. Extra shifts are available and I don't sign up. Doesn't mean I don't know good and well that IF I did sign up -- the MONEY would be nice to have. BUT, I don't want it bad enough to work a 6th day or extra hours. I really don't want to be at my job the hours and days I HAVE to be there. For the most part, I'm not interest in looking at my co-workers and working any more than I have to. But I know that's a blessed position to be in, to make more than I need day-to-day. I'd rather have both my days off -- than fill one of those with OT.
At my job OT is only paid in MONEY. BUT HOLIDAYS worked can be TIME or MONEY. For YEARS I've banked holiday pay as comp time., with the goal of getting to a certain number of weeks of time owed back to me in paid time off. Now that I have accumulated those weeks (more than two months), all holiday pay going forward -- will be in MONEY. So, I'll be able to boost my paycheck with holiday pay, INSTEAD of working additional hours as OT.
Perhaps it was the way in which you phrases or positioned your issue. Doesn't mean any perceived anger you feel is warranted, but that could be the spark.
1) Why would you have to pay it in a big chunk? EVen if you do think you might swing from getting refund all the way up to owing a few thousand, you can always adjust your withholding if you think it might help.
2) You make a lot more than some people -- likely many people -- on this board -- so, no there may not be many people who can identify with the way you posited the question.
3) You add another wrinkle by saying it seems like working OT isn't worth it, meaning the money isn't worth giving up you time -- away from family or whatever else you could be doing. THAT has nothing to do with whether you might pay more in taxes….when of course if you make more you'll pay taxes on that money and still be left with more than if you hadn't worked the OT
If you aren't sure whether YOU think for YOU, that the OT money is worth going into work, instead of taking 'comp time' -- and wondered if other could relate then the tax issue seems irrelevant.
That said…I will say I am blessed enough to not need to work OT. Extra shifts are available and I don't sign up. Doesn't mean I don't know good and well that IF I did sign up the MONEY -- would be nice to have. BUT, I don't want it bad enough to work a 6th day. I really don't want to be at my job the hours and days I HAVE to be there. For the most part I'm not interest in looking at my co-workers and working any more than I have to. But I know that's a blessed position to be in, TO make more than I need day-to day. I'd rather have both my days off -- than fill one of those with OT.
At my job OT is only paid in MONEY. BUT HOLIDAYS worked can be TIME or MONEY. For YEARS I've banked holiday pay as comp time., with the goal of getting to a certain number of weeks time owed back to me in paid time off. Now that I have accumulated those weeks. All holiday pay will be in MONEY going forward. SO I'll be able to boost my paycheck with holiday pay, INSTEAD of working additional hours as OT.
Wowza. Nevermind. Take care. I must have come of rude or something. If I did I apologize. But for the purposes of the thread never thought I would be getting judged one way or another. To those who provided the links to the estimators, thanks.
All I did was try to answer your last question about "why the anger."
As a matter of fact I GET that someone can wonder whether working OT is worth it. I believe I said that for me it's not.
I'm not judging you. Nor am I angry with you at all. So, you have a good day too.
My wife and I grossed 185k last tax return. We got back less then a thousand between State and Federal. If we earn more doing OT we will likely owe a few thousand. Sure we would make more overall money. Yet, then have a tax bill and have to pay in a big chunk. Anyone in that same boat ? Feels like getting a moderate raise or working OT is not worth it. Might be best to work credit hours and take days off.
Yep, we cut way back. We could die tomorrow and the one thing we can never get back is time and if our time becomes less valuable due to taxation it's time to keep more of our time. Stuff is not important.
OP think of it this way. The government will always take as much money from the people as society allows but they will always reach for more. The current tactic is to demonize "the other guy" to gain the support of people lower on the income scale to take more of the other guys money. It's a win for government, a lose for the people even if you're not the other guy. You got to decide at what point the time you have left in your life is worth more than making more only for government to take it away.
The Standard deduction for a married couple in 2015 was $12,600. The personal exemption for 2015 be $4,000 per person. So lets say you are married with 1 child, you deduct
Standard Deduction: $12,600
Personal Exemption (3 people): $12,000
Total - $24,600
The government believes that your family can live on $24,600 a yr and any income above that amount is excess money and they can start taking your money away. The higher your income the more money government thinks you make too much money so they take a higher % of your money.
You got to read between the lines of what the tax code tells you. Government also uses the tax code to get people to do things they want too.
I'd gladly pay higher internal taxes to have enough taxable income to be in the 39.6% bracket! I'm no tax expert and I think many of the posters, who know what they're talking about, have sufficiently explained why the OP should not worry about how making over time will affect the taxes he owes. If I understand the OP, I thought he said he got a refund for 2015, albeit smaller than he wanted. The graduated tax brackets are set up so that no one is severely penalized for making a few dollars over the threshold.
Sure you would.... just like those kids who said they want socialism but think about it... Obamacare was based on the young buying something they most likely wouldn't need and their money would pay for the older people. They were all for it until the money came out of their pocket so they opted to pay "the fine" instead of expensive healthcare premiums.
In other words, people are all talk until it's them.
By the way, it's called "progressive tax code". Obviously anyone who supports it never expects to make high income.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm no tax expert and I think many of the posters, who know what they're talking about, have sufficiently explained why the OP should not worry about how making over time will affect the taxes he owes. If I understand the OP, I thought he said he got a refund for 2015, albeit smaller than he wanted. The graduated tax brackets are set up so that no one is severely penalized for making a few dollars over the threshold.
