re: Trump - No taxes on overtime

Work 10-12 hour shifts at a hospital. I've worked 10 straight before. 30 hours of OT. Normally half is eaten by taxes. This would be YUGE

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You’ve obviously never worked (6) 10’s.

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(6) 12’s and Uncle Sam rapes you with the taxes

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Why doesn’t trump just say…”$10,000 to every person who votes for me “?

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Because it’s more realistic to allow them to keep their $10,000.

There’s no way you’re alluding to him buying votes with their own money.

Exactly! And then one day you miss and realize you don’t make that much after taxes.

Is Overtime Taxed More Than Regular Time? Taxshark

Does Overtime Work Get Taxed More?

Short answer, no. The rate you are taxed remains the same whether you work standard or overtime hours.

The confusion arises when the income you earn working overtime pushes you into a higher tax bracket. The IRS uses your gross income, the total income you make before deductions and taxes, to determine your tax bracket. The higher your tax bracket the higher your income, and the more taxes you will pay. In other words, the rate you are taxed increases as your income increases.

For the 2022 tax year, there are seven tax brackets for ordinary income. These brackets apply to the taxes you’ll file in April 2023.

For example, if, as a single taxpayer, you make $80,000 in 2022, you will be taxed at a rate of 22%. If you work overtime and end up with a gross income of $90,000, you move up a tax bracket and are taxed at a higher rate of 24%.

Is Overtime Taxed Differently?

Your overtime wages are taxed at the same rate as your regular wage bracket (10% for the lowest income and 37% for the highest income), no matter how many hours each week you work. Employers must withhold taxes from the paychecks of salaried employees as determined by the IRS tax tables.

For example, if you fall into the 24% tax bracket and work overtime for $100, your employer must withhold $24 (.24 x $100 = $24) because of federal income taxes.

While withholding tax is calculated the same way for overtime and regular pay, the additional income could increase your gross revenue and push you into a higher wage bracket.

For example, you may earn an annual salary of $88,725 within the 22% tax bracket. Working hours of overtime could raise your estimated yearly salary past $89,075, meaning your paycheck would be taxed at 24%.


Overtime pay and the tax bracket myth explained

Many employees incorrectly believe that when their overtime earnings push them into a higher tax bracket, they take home less money than they would have if they just worked their regular hours. This is a myth. Tax deductions are based on your estimated annual salary for that pay period.

Working overtime can potentially raise your income enough to push you into a higher wage bracket, but you will only be taxed at a higher rate for that pay period. If you don’t work overtime during your next pay period, you will be taxed within the normal rates for your expected income bracket.

Is My Tax Withholding More for Overtime Pay?

Tax withholdings for overtime pay are calculated the same way as regular pay. Earning $100 in overtime and being in the 32% tax bracket will require your employer to withhold $32 from your weekly paycheck.

However, if the money you make working overtime pushes you into a higher tax bracket, you will be taxed at a higher rate. In this case, it isn’t your overtime that is taxed more; it’s your entire gross income (your total income before taxes and deductions).

If you make $30,000 a year without overtime, your tax rate is 12%. If you work overtime and end up with a gross income of $45,000, you will be nudged into the next tax bracket, and your federal tax withholding tax rate will be 22%.

As well as federal income tax, you may also have to pay state taxes on your overtime earnings. If you owe state taxes, your employer will use the information from the state version of Form W-4 and your income to determine how much to withhold.

Your employer may also withhold local taxes if your city or community has an income tax. These rules and rates vary based on location.
How Many Hours of Overtime Can I Work Before I Get Taxed More?

Your payroll taxes are calculated based on your estimated annual income, so how much overtime you work before you enter the next tax bracket depends on your regular wages and household income.

If you make $18 an hour and work 40 hours a week, your annual income would be $37,440 (18×40=720, 720×52=37,440). $37,440 would place you in the 12% tax bracket. The 22% tax bracket begins at $41,775.

If you decided to work 14 hours of overtime each month, you would earn an additional $378 a month, resulting in an annual income of $41,976 (18×1.5=27, 27×14=378, 378×12=4,536, 4,536+37,440=41,976). Raising your income to $41,976 will place you in a higher tax bracket, the 22% tax bracket.

Therefore, in this example, you can only work 13 hours of overtime per month before increasing your payroll taxes because your total income would be $41,652.

Is Overtime Worth it After Taxes?

Yes, working overtime is worth it. Earning a higher rate of pay for overtime doesn’t necessarily mean a higher tax bracket; it means your taxable income will be higher for that tax year.

For non-exempt employees, working extra time means earning extra money, no matter how much you’re taxed. Working more hours means a bigger paycheck, and a bigger paycheck means more taxes.

But just because you pay more taxes, it doesn’t mean the extra hours aren’t worth it. You’ll want to crunch the numbers to determine how many additional hours you can work before it becomes less worth the effort.

If you make $20 per hour and work 40 hours a week for a yearly salary of $41,600, you fall into the 12% federal income tax bracket for 2022.

On a typical week, you make $800 ($20 x 40 hours) before taxes. Without any overtime, you pay $96 ($800 x .12) in federal income taxes and take home $704 before other deductions.

If you work 5 hours of overtime one week at a rate of 1.5x your normal wage, you make an extra $150 ($30 x 5) before taxes, for a total of $950. This higher sum pushes you into the next highest tax bracket, and you will have to pay 22% federal income tax. ($950 x .22) = you pay $209 in federal income taxes and take home $741. In this case, you only made $37 ($741-$704) working overtime.

If you work 20 hours of overtime one week, you make an extra $600 ($30 x 20) before taxes, for a total of $1,400. Though you worked more overtime hours, it wasn’t enough to push you further than the 22% tax bracket. ($1,400 x .22) = you pay $308 in federal income taxes and take home $1,092.

You can use this calculation to determine the exact number of overtime hours you need to work to meet your financial goals. If working overtime pushes you into a higher tax bracket, you will have to determine the amount of overtime that is worth it in your unique situation.

All these lower taxstion proposals need to be coupled with spending cuts. Big cuts.
1 trillion on interest each year. They are killing the country

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Why

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Why not? Have your seen the new rules this administration has put into place? It's killing workers pay and hiring small business. And it's going to be worse next year if they stay on course

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Why?

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I’m not a giant socialist but kick me in the nuts when I advocate for more taxes.

This is a stupid idea.

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I will explain this to you like you are retarded and maybe you will understand.

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Imagine arguing for more money being taken away from Americans to keep funding welfare queens like Ukraine & Israel. These people are fricking insane.