Does anyone know how many hours the “cut off” for overtime pay a week is before Uncle Sam decides to put you in a different tax bracket in Minnesota? Making your hard earned (possible fishing investments) “take home” less.
I don’t have any great facts or formulas for ya. I just know from experience that if I work 60 hours one week, that check is going to be good, but if I work an extra day and have a 72 hour week I’m not making hear as much in take-home, which I believe is what you’re describing.
50 to 55 hours is really the big one for me. If I work more then 55 I get hit really hard. I shoot for 55 a week.
Ditto, 15 to 20 hours .
That’s not how taxes work…you will be taxed on what your projected income for the year will be. So yes, working a bunch of overtime for just a portion of the year will show as a increase in taxes on that particular paycheck but it will all even out when you file your taxes. There is no point in which it doesn’t benefit you (financially) to work more overtime….
That’s not how taxes work…you will be taxed on what your projected income for the year will be. So yes, working a bunch of overtime for just a portion of the year will show as a increase in taxes on that particular paycheck but it will all even out when you file your taxes. There is no point in which it doesn’t benefit you (financially) to work more overtime….
This is correct.
The more taxes you are paying, the more you are making. Reminds me of this… when I worked in Minnetonka in the late 80’s and lived in SSP…. a guy told me if he leaves work 5 minutes after punching out, at 5:35, he gets home sooner, than if he left right at 5:30… wth ? I asked him how is this even possible ? Physics.
You are taxed on the money that puts you over not all your income. A big check will get wacked a lot initially as previously stated will even out. I often think about how some of my counterparts in other states with no income taxes must be loaded although they could have a higher cost of living. Do like living here though also.
<div class=”d4p-bbt-quote-title”>Smellson wrote:</div>
That’s not how taxes work…you will be taxed on what your projected income for the year will be. So yes, working a bunch of overtime for just a portion of the year will show as a increase in taxes on that particular paycheck but it will all even out when you file your taxes. There is no point in which it doesn’t benefit you (financially) to work more overtime….This is correct.
X2
This is why taxes get filed at the end of the year. If you paid too much you get a refund, if you paid too little you pay more. Simple. Overtime doesn’t affect you in a negative way financially, however at the end of the year you may get bumped up to the next tax bracket which may bring your average hourly wage down very slightly, but that shouldn’t be what you focus on.
9298EBC4-5110-481C-9733-5B8DB3030157.png
You have payroll witholdings every paycheck you pay taxes once a year.
I’m not necessarily look at the end of the year vs what my take home is going to be I don’t want to potentially make less or not much more if I work 10 to 12 hours over vs 16 to 18. I’m learning and trying to get a better grip on all this tax stuff it’s a whole new language if you’ve been oblivious about it and didn’t really care about it much in your 20’s. But thanks for all the input
If you want more money work more hours, especially overtime hours if your getting x + 1.5. Double overtime pay even better, I would grab that every chance I get. If your young work baby work!
I’m not necessarily look at the end of the year vs what my take home is going to be I don’t want to potentially make less or not much more if I work 10 to 12 hours over vs 16 to 18. I’m learning and trying to get a better grip on all this tax stuff it’s a whole new language if you’ve been oblivious about it and didn’t really care about it much in your 20’s. But thanks for all the input
What you are describing will never happen…alot of people are confused about the tax brackets. Some people think that if they bump up into the next tax bracket that all of their income will be taxed at that rate thus taking home less than they would have if they had worked a little less, and this is not the case. If you bump into the next tax bracket, only the money made over that threshold will be taxed at that rate. Again, there is no point in which you will take home less $ by working more.
Taxes will always be the same 
would you like some more uncle sam?
You can’t buy youth & good health back once you lose it so I view overtime as a bad deal, no matter how much fatter the wallet is on payday. The toll on your body & your family are not worth a few extra bucks that you’ll likely spend on stupid stuff anyways.
I used to chase the dollar like a fiend, for a long time. I even got a nickname that ended with ….”the overtime whore”. Back in those days I had big house I barely slept in, a really nice cruiser boat I barely used & a Harley I dusted more than I rode & I missed my kids growing up , etc….
Now… I can no longer ride a motorcycle. I’ve got a small house & a fishing boat. Life is a lot slower these days.
If I could get those hours back I wasted chasing that overtime money when I was younger & healthier, I would in a heartbeat. Work smarter, not harder. The guys I know with the most comfortable retirements didn’t work over 40 hrs/week.
We still pay in to Uncle Sam most years but it’s a whole lot less.
No one ever said on their deathbed “I wished I would have worked more”. ~ Author unknown to me
On the other hand, it sure is nice to have a few bucks in the pocket to do the things a person loves. ~ BK 2018
Don’t know many people who got ahead by not sacrificing a little. Just like anything else, everything in moderation.
What’s overtime? 
Don’t know many people who got ahead by not sacrificing a little. Just like anything else, everything in moderation.
What’s overtime?
LOL – regular hours for us.
Making your hard earned “take home” less.
One thing to point out is it is mathematically impossible to make less money due to income tax by increasing your income. The tax scales are progressive and the maximum brackets for Federal and MN are 37% and 9.85% respectively. There is also what they call the “payroll” tax for Social Security, Medicare & Medicaid that is 6.25% and it is capped at about $128K (meaning any income over the cap is not subject to the tax). In order to actually make less money the tax brackets would have to exceed 100% which they currently do not.
Now… what any particular take home paycheck becomes is a different story. The tax withheld is really an “estimated” tax payment. The true tax will not be known until the income sources are added at the end of the year. Tax withholdings however can be adjusted by claiming different allowances on your W4.
i am currently on a set salary based on a 45 hour week. but, back in the day i worked a fair amount of O.T. it allowed me to do things or buy things that i wouldnt of been able ot get on a straight 40. however i refused some voluntary OT if i had other plans. now when an employer mandates O.T., WHAT YA gonna do?
No one ever said on their deathbed “I wished I would have worked more”. ~ Author unknown to me
Me. I said that.
Now I gotta get back to work
S.R.
I know exactly what you saying. Once the office lady screwed up and only paid half my bonus. I was salary so checks were always the same as were bonuses. The following week she just added the remainder of bonus and check together and it significantly less then would have been separate. Obviously the before tax was the same but a lot more tax came out. She said don’t worry youll just get it back at the end of the year. We all know the outcome of that.
Well there’s a lot to digest here so I think I’m just going to work the hours they through at me this week it’s not something that happens often so I think I’ll just roll with the punches and see how it goes. And again thanks for all the input!
You may just want to have an awareness of if/when you move to the next bracket. At that point, you end up netting a bit less per hour and you may decide that makes overtime not worth it unless it’s mandatory.
I’m not sure how anyone can think overtime is not worth it?? Your paycheck isn’t going to get smaller. It’s extra money and it does wash out with tax returns.
Hey at least it’s not a conversation about a 32 hour week.
If it simply comes down to a financial question about working OT it’s a slam dunk. Work the extra hours. If one is still skeptical the best thing to do is to look at the tax tables. Look at the tax difference between making $5K more, $10K more, $20K more, etc. If you do the math most middle income earners will pay less than 5% more in taxes. It’s literally that low.
Side note if you’re concerned about how much your paying in taxes max your 401k lessens your tax burden and I view it as paying yourself first before your paying anyone else
I know exactly what you saying. Once the office lady screwed up and only paid half my bonus. I was salary so checks were always the same as were bonuses. The following week she just added the remainder of bonus and check together and it significantly less then would have been separate. Obviously the before tax was the same but a lot more tax came out. She said don’t worry youll just get it back at the end of the year. We all know the outcome of that.
???????????????? Your total taxable income and taxes for the year are going to be the same whether the bonus was paid one week by itself or if it was added to your regular paycheck… Maybe your tinfoil hat is on too tight.
You must be logged in to reply to this topic.
