Overtime Question when single

That's all I would work extra per paid period, anymore than that I change my deductions on my w2 so all my OT does not go to my uncle! Then of course I change it back after the pay period. It's very common where I work at. Just my experience. I am not by any means a tax advisor! ?

Stop watching Fox news. Whoever told you "all your extra work would go to Uncle Sam" is a bleeding moron.

If you want to defer taxes, immediately max out your tax deferred retirement options. You mentioned some other options, like buying a house, but that really can cost you more than the deduction - same for having kids.

Changing how much you claim on your W-4 will not raise or lower how much you pay in taxes, it will only change how much you pay in or get back when you settle up in April.

Personally, I try to adjust my exemptions so I break even or get back up to a couple grand at tax time. I hear about coworkers fidgeting with their exemptions around holidays and OT shifts and think it is silly.

The more you work, the more money you make.

I have been in healthcare since 1986 and there's nothing sweeter than some good ole OT!!! I am single with no kids. I am in nursing school now, but work as a tech/unit clerk. Uncle Sam is always coming for his ends lol. A 100+ hour check is better than an 80 hour check any day. There are a few hospitals that even give you a bonus for picking up extra shifts. Before my hospital was taken over by this big corp, we could get all the OT we wanted and they gave us a bonus for picking up extra shifts. I would work like a month straight with no days off sometimes. Oh man don't let it be a holiday. Some how I would always be off on Thanksgiving. I would work a double shift that day. The doctors would come early in the morning. You would just chill the rest of the day and evening. That was regular pay + shift differential after 3pm + holiday pay (time & 1/2) + OT (time & 1/2 cause I was always in OT by Thursday) + Bonus pay (for techs/unit clerks that worked out to be about another $6.25/hr). Holidays were sweeeeeeeet!!! LOL! It was great because all the main departments are closed and the doctors do their rounds early in order to spend the holiday with family. Most of the time the doctors would send as many patients home as they could before the holiday. We would be straight chilling lol.

Now, the big corp said we can't work more than 6 days in a row and they took away our bonus shifts. To say my paycheck took a hit would be the understatement of the century. Every time I look at my 80 hour check I think about what use to be...*goes into a rousing rendition of "The Way We Were"*. I say when Uncle Sam takes out so much tax that you can't even tell you got OT, then don't do OT. Until then, an 80+ hour check is better than a 80 hr or less check any day. Check yo cheddar Boo!

"Check yo cheddar, Boo!!" My new favorite saying of all time!! LOLOLOLOL

I claim single 0 as for me, combined income and not a lot of tax breaks are a sure way to owe big time come April.

With that being said, I would go stat to a local tax preparer/accountant/financial planner and ask. I have all my insurance taken out of my check. I have my mortgage direct deposited, you throw a few bucks into the IRA.....and what you have left is what you have left.

Being "worth it" is subjective. If you end up at the end of the day with $100 in the clear with an overtime shift, then that money could go into your savings. Depends on your goals.

And I am not sure when the housing market is going to go through the roof again, however, if you can get a deal, think it through. For some, if it is not going to be your "forever house" and your rent is reasonable, then I am not sure I would rush out to buy. However, if you are paying more in rent than you want to, (and hopefully if you are the utilities are included--if that is the case stay put!!) and you are paying mad electric bills and the like, then see what there is out there to buy at a lower cost to you.

But see a financial planner. See if your goals match your pay......and again, check yo cheddar (LOLOLOL LOVE this) LOOK at your pay stub, be sure you are being paid correctly, and be mindful of what it is you get for cash money for your overtime. Then only you can decide if it is worth it.

This is too easy.

Take your current stub, multiply out times # of pay periods in a year to get yourself an annual salary with a breakdown of your taxes. If you know what the additional pay is for for 2 weeks at 48 hours/week, use those rates. Come tax time, you'll get a breakdown and see where you're at with what you're declaring in deductions. It won't be exact, but it'll get you close.

For example, I learned of my weekend bonus being eliminated and getting cut to part time. I've already determined based upon my anticipated income for 24 hours/week how much I'd expect back with the EIC "free money" and how much disincentive there is to pick up any extra hours at a certain point as a result. At my current base, I'd get the equivalent of 20 hours/month at PRN pay to NOT work. I"ll add up and see what happens by adding in another 8 hours/week and see if I'd still get all of that money back or not.

This is too easy.

Take your current stub, multiply out times # of pay periods in a year to get yourself an annual salary with a breakdown of your taxes. If you know what the additional pay is for for 2 weeks at 48 hours/week, use those rates. Come tax time, you'll get a breakdown and see where you're at with what you're declaring in deductions. It won't be exact, but it'll get you close.

For example, I learned of my weekend bonus being eliminated and getting cut to part time. I've already determined based upon my anticipated income for 24 hours/week how much I'd expect back with the EIC "free money" and how much disincentive there is to pick up any extra hours at a certain point as a result. At my current base, I'd get the equivalent of 20 hours/month at PRN pay to NOT work. I"ll add up and see what happens by adding in another 8 hours/week and see if I'd still get all of that money back or not.

Your Earned Income Tax Credit numbers are incorrect.

You appear to be only counting the so called "free money" from the tax credit you get while ignoring the additional income you would earn by working.

(Sidenote: many 'conservatives' do this when claiming the EIC is a "disincentive to work.")

I claim zero and instead aim to get the money back at the end of the year. Since I have two to three jobs on average, I'll have an additional 9 dollars taken out weekly from every job and I'll just get it back later.

It depends what you mean by "good." Yes, you will earn more money if you work extra. Yes, as your income rises, you pay a higher percentage in taxes. But when you do the math, few peope say, "I would rather make $50K than $100K because those people who make $100K pay a higher tax rate."

And contrary to what some people seem to think, the higher tax rate only applies to the money you make that falls into that higher category, it doesn't raise the rate you pay on the first dollar you earn.

For fun, I looked up tax rates for 50k vs 100k. Let's say both those numbers are after deductions (taxable). The federal rate is 25% up to $87,850 (hey OP, look at these rates!). The rate is 28% from $87,850 to $183,250. So the fictional person above would pay an 'extra' three percent on $12,150:

$364.50

To recap: making an extra $50,000 in the example above nets a "tax penalty" of $364.50 over and above the rate they were already paying.

To the OP and everyone else: remember this when people tell you that working more just means "It all goes to Uncle Sam." It doesn't.

Rich people have known this since forever, but since they don't want to pay any taxes, they spread lies to convince the poor and middle class to lower their taxes.

OP 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.