Overtime Question when single - page 2
by EMEddie 4,033 Views | 11 Comments
I am a single guy, have not bought a house yet, claim 1 on my federal/state, so how much overtime is really worth it working for someone like me? My normal schedule are 3 12s per week, get paid every 2 weeks. Is picking up... Read More
- 0Oct 8, '13 by llg Guide... and don't forget to check ... Some of you benefits may be tied to the number of hours you work. So if you work more hours, you get a greater benefit. For example, if you earn vacation time based on hours work, you would earn more vacation time if you picked up some extra hours. How much are those extra vacation hours worked? If you are not maxed out on your retirement contribution, it might get you more retirement savings, etc. If it raised the income counted towards your eligibility for Social Security benefits (or pension benefits) later in life, those extra hours could be increasing your retirement income for decades.
How much extra benefits those extra hours might bring depends on how your benefits are structured and whether you are getting the maximum benefit from them now or not. But it is certainly worth checking.
- 1Oct 8, '13 by Eru IlúvatarOP dont be fooled with that common belief that OT money is taxed differently for some magical reason. I worked 2 years in the Tax preparation industry and have never see a case were working OT made you a candidate for a secret special tax.
Tax rates are a very straightforward mathematical function. Is based on how much you made combined at the end of the tax year, minus deductions, credits, etc. Then your income is split in brackets or sections and certain % amounts of each bracket is taxed. Never will you be double taxed in any of your earned dollars...( some cases of double taxation exist, but this happens mostly to corporations or business) What this means is that if you would make lets say 40k that year you would be taxed appropriately based on that income, any OT that you did that year will just increase your earnings from lets say 40k to 50k total at the end of the year, and will be taxed based in a gross income of 50k.
Never will working OT have a negative return on your earnings, you will always make a lot of money after tax when working OT.