Skull Pilot
Diamond Member
- Nov 17, 2007
- 45,446
- 6,163
Actually it doesn't. As I explained to that moron paintmyhouse, the tax paid is not returned in the form of a refund on a dollar for dollar rate.But in the long run it evens out.Yes in weekly checksIn a weekly check maybe but as I said in the end unless you are actually pushed into a higher bracket you still make more because the extra tax taken out on a high overtime check will be used to offset something else resulting in either a higher return or a lower tax billPlease read my previous comment.Your annual taxes are based on your adjusted gross income. Unless your overtime actually pushed you into another bracket at the end of the year you will pay the same tax rate on your overtime as you did on the rest of your income.
However I've had guys point out they would have made more money if they had worked less hours when it comes to overtime.
If you made 100K in 10 weeks and nothing else the rest of the year you would not pay more in total taxes than you would if you made that 100K in 52 weeks.
All that really matters in the end is your Adjusted Gross income.
If your overtime did not push you into a higher tax bracket then if you might have paid a higher rate on some overtime than your highest bracket it would even out