Quote:
Originally Posted by haymura
Can someone dumb this down for me. What yray is explaining is exactly what my situation is right now. Im working a full-time job making 40k a year and I took a part-time job that pays $12/hr for 30hrs a week. Are you guys saying my 2nd job is fruitless and not worth it?
|
My understanding of situations like this, especially when you’re just working insane amounts of OT which push you into the next tax bracket, is that eventually you’re getting taxed so heavily on that OT income that it cuts into your hourly wage fairly substantially.
I knew a landscaper who worked stupid OT like 60-70 hours a week type thing, he said his accountant told him that for some of those hours like the 67th, 68th, 69th hours, you’re essentially working for $7-$8 dollars an hour because of the tax implications.
Not sure how accurate that is but it kind of makes sense as you’re only getting paid X per hour, but you’re grossing substantially more than that job would pay annually without OT