I'm just gonna say it because it seems the comment section hasn't said it. Working 50, 60+ hours working a mediocre job that pays laughable wages can piss people off. The video bringing up a six-figure job as a baseline is not a relatable situation for most. When you bearly make it by and you work 15+ hours of O.T and see you get taxed 400$ or more taken, it's a big deal when you feel you can barely make it. Coming from the same situation, all I can say is develop a skill that makes you valuable. Don't expect much from a job that can be done by lazy slop. You know you're worth... chase it.
I am working overtime, every single week, and recently have started double overtime every week because of hiring shortages. I lose %43~ of my income to taxes, it's pointless to work so many hours.
Dude, i make 90k a year working slightly over 52 hours a week on average. My total deduction including 401k are like 30% of my check. How are you being taxed that much?
They overtaxed you on that single pay that you worked 12 hours overtime on. That's why you receive a tax refund when you file your taxes for that year, you get that excess tax back. It's not a perfect system, but they would rather people get a refund for overpaying on their taxes vs having people owe money at the end of the year. Another thing to consider, is there are sometimes other payroll deductions that happen only once a month (benefits, health premiums, etc...) that people fail to take into consideration. Like if you didn't work any OT on one pay with none of these deductions and compare it your OT pay with these deductions. Depending on how much OT you work, sometimes it looks like you made less on the OT pay, but this was only because of the deductions.
I just had this conversation with a person I know and he’s exactly the type of person you described in the beginning. Same behavior towards work. Complains about not making enough but never takes the given opportunity.
Truth is he is most likely smarter than you. Working OT results to nothing in fact many people would be low millionaires (750k) or set for life in 15 to 18 years but it aint like that. Saving and investing is the solution too this cycle.
Valid attempt but I think this way is simpler. When you file taxe returns in February, any extra money that you were taxed is recalculated and adjusted. The govt will look at your yearly income and tax that accordingly, any difference between all the biweeklys where they withheld taxes and what the actual thing should be is what you get back on your tax return. It all comes back to you. This happened to me once when I got overpaid by error and hr did some gymnastics to fix it and I made a Tiff about taxes stealing my money 😂
I seen my pay stubs at my work place. My paycheck did not increase that much after work over time I work 100 hours in two weeks. I also got a 150 dollar bonus. I made 1550 dollar but texas came in I was tax 532 dollars. So yeah my paycheck did not increase that much from working overtime. And when I did my taxes next year my tax rebate was the same. And when I work overtime I wad tired 😫 😴 😪. I felt like shit. I seen working overtime in West Virginia doses not increase you paycheck that much. I think because I'm single with no kids the state and federal government thinks i can pay more in taxes when I need to work overtime. I think overtime should be tax free i think more people would be willing to work overtime if it wad tax free.
I don't know your base pay but I work in manfacturing with a base pay of 15.50 and overtime rate 23.25. I work 7 days ever two week and do over 5 days of ever. So my base pay is around 1200 after taxes and around 1300. Every pay month I get close to 5 grand a month.
Yeah. 13.5% no overtime vs 20.2% with overtime. Doesn't really matter while in the struggle that it's still the same at the end of the year. Lots of people live a paycheck or two at a time, especially if they're young and/or single. When you sacrifice personal life for that 110 hour pay period and then get paid maybe 1.3x the usual... it's just not worth it. Especially when the busiest times of most work is in summertime when you should be enjoying your personal time... That's why the OT is not worth chasing. But if you get laid off for the winter, you have to get the employment insurance hours in anyways so then it doesn't matter.
Overtime is worth it if you want or need extra money. I will give you a simple example. (Just an example) Lets say you make $30 hr and thats taxed at 13.5% that comes to $25.95 hr after tax take home. So now you work overtime at $45 hr and gets taxed at 20.5% overall that makes your overtime take home pay equal $35.78 hr. Thats still $10 an hour take home more than your regular wage. Trust me its always worth it. I work a shit ton of overtime and the paychecks are always way bigger than a normal 40 hr week check.
@amattson6578 Well, maybe it's different wherever you live and how much you claim yearly, dependants, etc. However, I think if you like money and are willing to work longer hours, you can just do side hustles. No tax man there. One December, I was booking truck and hauling services in my personal truck. Made some quick present money.
@@seviren side hustles are great if someone has a skill or trade. Im just debunking the myth that overtime pay isnt worth it. If you need money and your job is offering overtime its always going to put more money in your pocket.
But in the end you pay more in taxes still just by working more hours because, like what you said we are in a different bracket now in income. Thats what people mean. As an employee, the more you make the more taxes you pay. The only bracket that i know of that is the exception of this rule is business owners because they're the life blood of the world market. In the end do we get back a bigger portion of our taxes back for working more hours like ovetime because we are still below the 350,000 mark for middle income family's? It's hard to say but you know what I mean. Nice video, I appreciate you clearing up the miss information.
Exactly!!... i’ve been working overtime and over 1000 is taken out of my paycheck, we say is not worth it because we are not getting paid the time in a half per hr like we think we are.. and as a nurse is not worth kicking your butt that extra day
Had a friend that worked 22 hours of overtime and it amounted to $572 because minimum wage and time and a half. Taxes took an additional $500 from my boy on his check. Ridiculous.
This video could be confusing and does not explain the diffence between taxes paid and taxes withheld. What you need to realize is that taxes being taken out of your check are being WITHHELD ( put in an account to pay your tax bill). At the end of the year you file your taxes and you get a final tax bill. No matter how the income is earned ( say $50k) your tax bill will be the same. Say your final tax bill is $5000 and $6000 was withheld (taken from your check), you will get a refund of $1000. If they only took out $4000 from your checks you would owe $1000. All these %'s taken from your check are irrelevant.
You should really analyze the pay periods you are comparing and look at all of the deductions to take them into account to compare apples to apples. Like benefits, health premiums, etc... that usually only come off one pay each month. It's impossible to make less if you made $258 in overtime based on taxes. For example, in 2024 if you were single and made $1 Million a year in California (high tax State) you would pay an effective federal tax rate of 32.52% and a state tax rate of 10.49% for a total of 43.01% or $430081 in taxes with a net income of $569919. Basically, even at the extreme of making $1 Million a year in California you would only pay $110.97 in taxes for $258.00 in overtime (43.01%).
1) why are you pay/play catch up by paying higher taxes for the earlier months when your salary was 80k? 2) So n actuality, you tax rate increases with OT use to different taxe bracket. But if 100-150k fall under same taxes bracket dong OT s actually a positive move?
It’s like buying a $.99 cheeseburger but your total is $1.08……… You have to spend nine cents in taxes for that food item but if somebody only has five bucks to their name and somebody else has $500,000 to their name they still have to pay the same amount of tax because of the price not how much buying that cheeseburger affects their personal lifestyle
In Canada, If I work OT, I lose approximately 48% to taxes, so no, working OT is not worth it. In short, for every 2 shifts that I work, it is like I worked one for free as it all went to Taxes. The government cannot tax my time off, at least yet.
Correct. This is why I dont try to go over any overtime. I make good money as a Operations Manager. But I see no difference in my weekly check when I do over 45 hours to 60 hours a week. If my net gross is over $2400, The feds will have a good day eating away at my check and my take home is only $1300 for 40 plus hours, and if I did 60 only $1500 its just myself Im claiming.
I know one thing after you pay taxes for your house when you buy it you pay taxes every single year until you die on the house so you never really own. It goes with the insurance so you still adjust the renter also after you pay your taxes. On your weekly wages as you have that money left after taxes you continue to pay taxes at the supermarket for every other goddamn thing that you pay for pretty much you get your car you get everything you already get taxed on your money and your money again again and again.
Ok im here because of research as of 2023 I'm at check #6 with 56hrs total (7 days) & 16hrs overtime but my #4 check with only 48 hrs total with 8 overtime my check #4 was actually more then check #6 I still get printed pay stubs and deposit into banks myself no direct deposit like to look at statement but in check #6 I pretty much work a whole day for nothing...this why I don't work over 48hrs it like IRS Loves to take large chunks make working over 50hrs worthless I have work over 62 hrs to see the extra that just too much working might well relax keep the extra years to my life instead keep over time under 48hrs atleast I won't be disappointed
could’ve sworn I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
what will happen if you instead tax more for earning more tax less for working more hours so, the goverment will push more people to work more hours and in the long term they will claim more taxes and their productivity of the people will increase af, what do you think? is this viable?
What if the overtime fluctuates. Like one month I worked overtime but the rest of the year I didn’t. Would I say be in that elevated tax bracket or will it regulate back to before ? And if I don’t go back to that bracket. Does that mean I’ll get back more money on my tax return?
So if I understand correctly you are saying that people who take more overtime benefit. The only person that benefits from overtime is the company. An eight hour shift is the contractual agreement overtime becomes a personal choice and if I’m asked to help and reduce the work load by doing a couple hours that should be looked at as me volunteering, why should my volunteering be considered additional income, time spent doing more work on personal time should not be classified as anything else than volunteering and any compensation for that should not be taxed as the contractual obligation has been satisfied in which taxes have already been calculated, this double taxation is suspicious and that is why people are not interested in overtime because they have to pay twice in taxes while losing none retrievable personal time. There should be no adjustment to any check for taxes as long as the 8 hour contracted work period and tax calculations are correct the additional work is not the government’s business
Yes I could’ve sworn I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
The reality is that even though you get this money back at the end of the year, it still doesn't solve the fact that some individuals need 2 jobs to sustain a stable income especially here in texas. Because of taxes rent and house mortgages have went up. This means the individual needs to make more money if they want lesser stress on their body. This is why having certifications in trade or college can be beneficial for work industry. 13 dollars an hour with overtime is barely enough in Texas so yes it's good tax return gives you back the money you worked for but it's still a kick in the tail if your needing it then.
Texas is the worse state to use as an example. Y’all job market is just smooth the greatest in this country. Y’all cost of living is dirt cheap. Getting a $60k a year job in Texas is pretty much a guarantee for anyone born in this country that wants to work. Easy money. Come to Florida and Then complain. Move to South Florida and really complain.
@@ritzkola2302 I don't understand Florida but I can tell you unless you have a trade or degree. Texas is expensive for those of us living from paycheck to paycheck.
@@christianhenry4173 Again that is a lie. Texas is not expensive. Y’all have just about the greatest job market of every state. High paying jobs are a drop in the bucket throughout Texas while the cost of living is dirt cheap. I served with tons of people from Texas and have family currently stationed in Texas. Friends from there born and raised. My 800sq ft 1 bdrm 1ba, lots of mold, in the second poorest and most dangerous neighborhood in SOUTH FLORIDA (liberty city) costs me $1100 a month. My homeboy is in Killeen paying $750 for a 3bd 2ba balcony and garage. Again y’all have it great. You’re complaining about nothing.
@@ritzkola2302 your talking military I'm not post military I'm not post military so that doesn't apply to all citizens. The average salary in Texas is 26000 year. Unless you have a degree or trade the cost of living is harder for minimum wage salaries. I stay here and I know. 36k a year is barely enough for a single household. Plus you talk about 1100 a month? Doc in tarrant county rent is usually 1500 for a 1 bedroom kileen is not as expensive as Arlington because it's a military city. Arlington and DFW plus Houston are very expensive places to live. Any other city around there is also expensive thanks to taxes and raises on costs. Next time look at the whole picture instead of one narrow perspective about careers. I stay here so I know the struggle unless you have high career paying jobs.
There is no best time to start working over time unless it's in the beginning of the year. Atleast from I understand from the video. He explains it as playing catch up with money for the government basically
I could’ve sworn I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
Because you get taxed on how much you make not how much you work $250,000 is what gets taxed not what you had to do or how much time you had to spend to get 250 K
I always have private Snickers in my head when I hear somebody say that they don't want to work overtime, or complain that the overtime will just all be taken by taxes. The same people would gladly take a pay raise that might put them making the exact same amount of money as they would have if they had worked the overtime, and guess what they pay the same amount of taxes.
@@edocsil1635 Of course it's nicer to make more money for the same amount of hours or less. But that has nothing to do with taxes. Also, if you assume that you're getting time and a half pay for overtime, like most people do, then working overtime is like working a second part-time job that pays you 50% better than your regular job.
The reason they think they’ll be taxed more is the GOP tax bracket myth. Despite the reality that you are only taxed at bracket rate for every dollar you make into the bracket and every dollar you make below the bracket is taxed at a lower rate. Republican politicians lie and claim your tax bracket is how much you are taxed for every dollar you make. This is done to trick the middle class into voting Republican and being sympathetic to the upper class they have nothing in common with rather than the lower class they do have things in common with.
@@duckhawkninja3614 It still doesn't make sense even if you believe the various myths like the leftard myth that the rich are the only ones getting hit with the eye taxes, or that the low-income pay their fair share. The simple thought process to me is if you would welcome a raise from $80,000 a year to $100,000 a year, but don't want to work that extra overtime to get the $20,000 difference, because of taxes, you're a freaking idiot. If you're just lazy and don't want to work an extra 7 hours a week to make the extra 20,000, that's a fair argument, but don't blame it on taxes.
@@rockymntnliberty your second myth isn’t so much a myth as it is a matter of perspective. Fairness isn’t exactly something that can be objectively measured.
@@igol7_26 But he's making my life hard! Paul is both my mentor and my competition - and he is killing this content game haha. Also, appreciate the support my man!
These people you complain about at the start arent wrong. If you work 40 hours you shouldnt be broke. You shouldnt have to work overtime to just make it. To them the overtime isnt worth it when they want the free time. Dont be a corporate simp
I would comment that if working a little bit of overtime puts you into a higher tax bracket yes and that specific instance it can cost you more than it's worth but if you're going to be in the same tax bracket regardless or if your tax only goes up like 2% but you made 10% more because of the overtime it's not hard to do the math but math is hard for most people
I could’ve sworn I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
Overtime does increase your taxes and is simply not worth it. The more you make the more the government takes. If someone who is making 250k annual salary at 40 hours a week is totally different than someone who made 250k working 80 hours a week because of overtime. Of course you will jump in a higher tax bracket. What is there to understand? The more you make the more they take overtime or not. There is no getting around that reality.
I could’ve sworn I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
@@didiash federal government tax rates for the fiscal tax year determines the tax rate……. it used to just be like 10% for the first tax bracket at one point but they raised it up to 12% last year for the first tax bracket and sometimes they adjust the dollar amount for the different tax brackets as well……. for instance, if they decide to make it 15% next year for the first tax bracket they could raise the tax bracket to be $1-$50,000 instead of just $1-$40,000…… which is good if they raise the tax bracket because that can help some people cause if you make $50,000 a year then that means you’re only in the first tax bracket and don’t get into the second tax bracket and you could save money on your taxes, if you’re part of that lucky minority that Benefits from the adjustment (probably not…..but maybe)
Look at state records. In Washington I found several regular RNs making 300k a year and many many nurses making over 200k a year. They can work unlimited overtime.
I'm a nurse it's possible but require lots of overtime and experience or a higher degree. Nurse anesthetist make 150-300k a year. Nurse with an associate degree with 20 years experience(not a supervisor just a regular employee) at my hospital makes $55/hour (103k a year working 3days a week 12hour shifts). With overtime can clear 200k but very miserable life working that many hours. Not to mention with nurse shortage they give $100-350 bonus per shift depending on the time of year.
@@-ANT-69 exactly same point I just mentioned. Sure you can get this money back at the end of the year but your body is stressed from too much overtime. It's not worth it. A person is better off working a decent job with less demand for their bills or working 2 Jobs instead of the taxes needed before tax return. Overtime is not worth it on the employee.
@@PaulTranPharmacist yes @ Paul Tran Pharmacist I could’ve sworn what you said about catching up for new tax bracket is false cuz I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
So therefore YOU ARE going to pay more in taxes because there is no way around making more and then being in SAME TAX BRACKET 😒 so once another tax bracket level is hit , your taxed based off the numbers you make soooo you definitely are being taxed more 🫠
Personally I believe, after 40 hours your taxes should stop. Anything over 40 hours should be untaxed.
The irs. Put it together it says :THEIRS: 😂
@@joeknowme7968 GOLD
You shouldn’t get taxed on earned income.
@@Armonicyila it’d be almost like you have an incentive to work harder.
@therolltide
I'm just gonna say it because it seems the comment section hasn't said it. Working 50, 60+ hours working a mediocre job that pays laughable wages can piss people off. The video bringing up a six-figure job as a baseline is not a relatable situation for most. When you bearly make it by and you work 15+ hours of O.T and see you get taxed 400$ or more taken, it's a big deal when you feel you can barely make it. Coming from the same situation, all I can say is develop a skill that makes you valuable. Don't expect much from a job that can be done by lazy slop. You know you're worth... chase it.
Needed to read this. Thank you
I am working overtime, every single week, and recently have started double overtime every week because of hiring shortages. I lose %43~ of my income to taxes, it's pointless to work so many hours.
Yea F that. It don’t make much of a difference. $600 taxes from $1800 down to $1200 is ridiculous
Dude, i make 90k a year working slightly over 52 hours a week on average. My total deduction including 401k are like 30% of my check. How are you being taxed that much?
@@ShotGunner5609claims differently, maybe he's taking state into account as well while you're just taking in federal taxes
@Zociety6477 naw, thats state and federal for me.
I learned anything past 60hrs i pointless...lol @64.25 I brought home 1089$ and @62.75=1086$. No thanks
If I work 12 hours overtime out of that $1, 300 I only get $123. What kind of s*** is that
They overtaxed you on that single pay that you worked 12 hours overtime on. That's why you receive a tax refund when you file your taxes for that year, you get that excess tax back. It's not a perfect system, but they would rather people get a refund for overpaying on their taxes vs having people owe money at the end of the year.
Another thing to consider, is there are sometimes other payroll deductions that happen only once a month (benefits, health premiums, etc...) that people fail to take into consideration. Like if you didn't work any OT on one pay with none of these deductions and compare it your OT pay with these deductions. Depending on how much OT you work, sometimes it looks like you made less on the OT pay, but this was only because of the deductions.
No, it shouldn't be taxes at all. I'd rather have my hard earned cash now not some time in the future. @@ThePackageLives
Taxes should consider the amount of hours you work (aka contribute to society). And overtime sjould be a lower tax amount
Lower as in ZERO
Depends on the job actual workers lime construction plumbers electricians should have lower tax than people who do nothing at all
It shouldn't be taxes at all
I just had this conversation with a person I know and he’s exactly the type of person you described in the beginning. Same behavior towards work. Complains about not making enough but never takes the given opportunity.
Truth is he is most likely smarter than you. Working OT results to nothing in fact many people would be low millionaires (750k) or set for life in 15 to 18 years but it aint like that. Saving and investing is the solution too this cycle.
You dont pay more in taxes you just imcrease your tax bracket and pay more in taxes.
What?!🤔 What the heck did you just say? 🤔
Yes. It just has nothing to do with overtime.
Imcrease?
It’s our money and our time we are sacrificing stop the high taxes let us live more by having and creating more wealth
Valid attempt but I think this way is simpler.
When you file taxe returns in February, any extra money that you were taxed is recalculated and adjusted. The govt will look at your yearly income and tax that accordingly, any difference between all the biweeklys where they withheld taxes and what the actual thing should be is what you get back on your tax return.
It all comes back to you.
This happened to me once when I got overpaid by error and hr did some gymnastics to fix it and I made a Tiff about taxes stealing my money 😂
The difference is the amazon worker didn't work on Saturday I stead of spending time with his kid
I seen my pay stubs at my work place. My paycheck did not increase that much after work over time I work 100 hours in two weeks. I also got a 150 dollar bonus. I made 1550 dollar but texas came in I was tax 532 dollars. So yeah my paycheck did not increase that much from working overtime. And when I did my taxes next year my tax rebate was the same. And when I work overtime I wad tired 😫 😴 😪. I felt like shit. I seen working overtime in West Virginia doses not increase you paycheck that much. I think because I'm single with no kids the state and federal government thinks i can pay more in taxes when I need to work overtime. I think overtime should be tax free i think more people would be willing to work overtime if it wad tax free.
I don't know your base pay but I work in manfacturing with a base pay of 15.50 and overtime rate 23.25. I work 7 days ever two week and do over 5 days of ever. So my base pay is around 1200 after taxes and around 1300. Every pay month I get close to 5 grand a month.
Would be the quickest way to get people out of debt/ poverty
@@AlainTabangin $1200 per week?
Yeah. 13.5% no overtime vs 20.2% with overtime. Doesn't really matter while in the struggle that it's still the same at the end of the year. Lots of people live a paycheck or two at a time, especially if they're young and/or single. When you sacrifice personal life for that 110 hour pay period and then get paid maybe 1.3x the usual... it's just not worth it. Especially when the busiest times of most work is in summertime when you should be enjoying your personal time... That's why the OT is not worth chasing.
But if you get laid off for the winter, you have to get the employment insurance hours in anyways so then it doesn't matter.
Overtime is worth it if you want or need extra money. I will give you a simple example. (Just an example) Lets say you make $30 hr and thats taxed at 13.5% that comes to $25.95 hr after tax take home. So now you work overtime at $45 hr and gets taxed at 20.5% overall that makes your overtime take home pay equal $35.78 hr. Thats still $10 an hour take home more than your regular wage. Trust me its always worth it. I work a shit ton of overtime and the paychecks are always way bigger than a normal 40 hr week check.
@amattson6578 Well, maybe it's different wherever you live and how much you claim yearly, dependants, etc. However, I think if you like money and are willing to work longer hours, you can just do side hustles. No tax man there. One December, I was booking truck and hauling services in my personal truck. Made some quick present money.
@@seviren side hustles are great if someone has a skill or trade. Im just debunking the myth that overtime pay isnt worth it. If you need money and your job is offering overtime its always going to put more money in your pocket.
But in the end you pay more in taxes still just by working more hours because, like what you said we are in a different bracket now in income. Thats what people mean. As an employee, the more you make the more taxes you pay. The only bracket that i know of that is the exception of this rule is business owners because they're the life blood of the world market. In the end do we get back a bigger portion of our taxes back for working more hours like ovetime because we are still below the 350,000 mark for middle income family's? It's hard to say but you know what I mean. Nice video, I appreciate you clearing up the miss information.
Exactly!!... i’ve been working overtime and over 1000 is taken out of my paycheck, we say is not worth it because we are not getting paid the time in a half per hr like we think we are.. and as a nurse is not worth kicking your butt that extra day
Had a friend that worked 22 hours of overtime and it amounted to $572 because minimum wage and time and a half. Taxes took an additional $500 from my boy on his check. Ridiculous.
So what you're saying is working overtime does increase your taxes and therefore you should not work overtime?
This video could be confusing and does not explain the diffence between taxes paid and taxes withheld. What you need to realize is that taxes being taken out of your check are being WITHHELD ( put in an account to pay your tax bill). At the end of the year you file your taxes and you get a final tax bill. No matter how the income is earned ( say $50k) your tax bill will be the same. Say your final tax bill is $5000 and $6000 was withheld (taken from your check), you will get a refund of $1000. If they only took out $4000 from your checks you would owe $1000. All these %'s taken from your check are irrelevant.
Made $258 in overtime got taxed $259 so totally not worth it.
You should really analyze the pay periods you are comparing and look at all of the deductions to take them into account to compare apples to apples. Like benefits, health premiums, etc... that usually only come off one pay each month.
It's impossible to make less if you made $258 in overtime based on taxes.
For example, in 2024 if you were single and made $1 Million a year in California (high tax State) you would pay an effective federal tax rate of 32.52% and a state tax rate of 10.49% for a total of 43.01% or $430081 in taxes with a net income of $569919.
Basically, even at the extreme of making $1 Million a year in California you would only pay $110.97 in taxes for $258.00 in overtime (43.01%).
1) why are you pay/play catch up by paying higher taxes for the earlier months when your salary was 80k?
2) So n actuality, you tax rate increases with OT use to different taxe bracket. But if 100-150k fall under same taxes bracket dong OT s actually a positive move?
Some who makes 50,000 a year working 72 hours a week shouldn't have to pay the same in taxes as someone making that same amount at 40 hrs a week
They don’t…….. 50,000 per year is what gets taxed not how many hours you work
It’s like buying a $.99 cheeseburger but your total is $1.08……… You have to spend nine cents in taxes for that food item but if somebody only has five bucks to their name and somebody else has $500,000 to their name they still have to pay the same amount of tax because of the price not how much buying that cheeseburger affects their personal lifestyle
Thanks for breaking it all down but that exactly what people are talking about, so they are not wrong that are just short sighted
In Canada, If I work OT, I lose approximately 48% to taxes, so no, working OT is not worth it. In short, for every 2 shifts that I work, it is like I worked one for free as it all went to Taxes. The government cannot tax my time off, at least yet.
Correct. This is why I dont try to go over any overtime. I make good money as a Operations Manager. But I see no difference in my weekly check when I do over 45 hours to 60 hours a week. If my net gross is over $2400, The feds will have a good day eating away at my check and my take home is only $1300 for 40 plus hours, and if I did 60 only $1500 its just myself Im claiming.
When I lived in Texas and now that I live in New York it's the same for every 5 days I work one day goes to taxes
I know one thing after you pay taxes for your house when you buy it you pay taxes every single year until you die on the house so you never really own. It goes with the insurance so you still adjust the renter also after you pay your taxes. On your weekly wages as you have that money left after taxes you continue to pay taxes at the supermarket for every other goddamn thing that you pay for pretty much you get your car you get everything you already get taxed on your money and your money again again and again.
Back to the old phrase the more you make the more you get tax but that shouldn’t stop you from hustling
Overtime can put you in a higher pay bracket which causes higher tax rate am i wrong.
Not at all people just talk In circles and make the same point but then say the point is different 😂😂😂 its literally the same
Ok im here because of research as of 2023 I'm at check #6 with 56hrs total (7 days) & 16hrs overtime but my #4 check with only 48 hrs total with 8 overtime my check #4 was actually more then check #6 I still get printed pay stubs and deposit into banks myself no direct deposit like to look at statement but in check #6 I pretty much work a whole day for nothing...this why I don't work over 48hrs it like IRS Loves to take large chunks make working over 50hrs worthless I have work over 62 hrs to see the extra that just too much working might well relax keep the extra years to my life instead keep over time under 48hrs atleast I won't be disappointed
Thank you for clearing that up.
Thanks for clearing that up!!
Came to say the same thing!
could’ve sworn I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
I get paid hourly, not salary. More is taken off my paycheck when I hit overtime hours.
Well I paid up to $1000 in taxes per week last year. Too much
I feel ya, Friend. I'd rather have the time with my family than work overtime on the weekends.
I hope you're having a great day. Wealth and Happiness.
Its either get more money up front or pay at end year
what will happen if you instead tax more for earning more tax less for working more hours so, the goverment will push more people to work more hours and in the long term they will claim more taxes and their productivity of the people will increase af, what do you think? is this viable?
What if the overtime fluctuates. Like one month I worked overtime but the rest of the year I didn’t. Would I say be in that elevated tax bracket or will it regulate back to before ? And if I don’t go back to that bracket. Does that mean I’ll get back more money on my tax return?
Made 340$ in ot and they Irs took 312$ 😂 yea that’s why I never have money
So if I understand correctly you are saying that people who take more overtime benefit. The only person that benefits from overtime is the company. An eight hour shift is the contractual agreement overtime becomes a personal choice and if I’m asked to help and reduce the work load by doing a couple hours that should be looked at as me volunteering, why should my volunteering be considered additional income, time spent doing more work on personal time should not be classified as anything else than volunteering and any compensation for that should not be taxed as the contractual obligation has been satisfied in which taxes have already been calculated, this double taxation is suspicious and that is why people are not interested in overtime because they have to pay twice in taxes while losing none retrievable personal time. There should be no adjustment to any check for taxes as long as the 8 hour contracted work period and tax calculations are correct the additional work is not the government’s business
I think people don't realize the money you make from overtime does not affect the rest of your income.
Yes I could’ve sworn I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
Over time shouldn’t be taxed at all. Why the fuck does the government bank extra money from your extra work
The reality is that even though you get this money back at the end of the year, it still doesn't solve the fact that some individuals need 2 jobs to sustain a stable income especially here in texas. Because of taxes rent and house mortgages have went up. This means the individual needs to make more money if they want lesser stress on their body. This is why having certifications in trade or college can be beneficial for work industry. 13 dollars an hour with overtime is barely enough in Texas so yes it's good tax return gives you back the money you worked for but it's still a kick in the tail if your needing it then.
Texas is the worse state to use as an example. Y’all job market is just smooth the greatest in this country. Y’all cost of living is dirt cheap. Getting a $60k a year job in Texas is pretty much a guarantee for anyone born in this country that wants to work. Easy money. Come to Florida and Then complain. Move to South Florida and really complain.
@@ritzkola2302 I don't understand Florida but I can tell you unless you have a trade or degree. Texas is expensive for those of us living from paycheck to paycheck.
@@christianhenry4173 Again that is a lie. Texas is not expensive. Y’all have just about the greatest job market of every state. High paying jobs are a drop in the bucket throughout Texas while the cost of living is dirt cheap. I served with tons of people from Texas and have family currently stationed in Texas. Friends from there born and raised. My 800sq ft 1 bdrm 1ba, lots of mold, in the second poorest and most dangerous neighborhood in SOUTH FLORIDA (liberty city) costs me $1100 a month. My homeboy is in Killeen paying $750 for a 3bd 2ba balcony and garage. Again y’all have it great. You’re complaining about nothing.
@@ritzkola2302 no we don't your talking to a person who lives in Texas and I'm on average income as a security officer
@@ritzkola2302 your talking military I'm not post military I'm not post military so that doesn't apply to all citizens. The average salary in Texas is 26000 year. Unless you have a degree or trade the cost of living is harder for minimum wage salaries. I stay here and I know. 36k a year is barely enough for a single household. Plus you talk about 1100 a month? Doc in tarrant county rent is usually 1500 for a 1 bedroom kileen is not as expensive as Arlington because it's a military city. Arlington and DFW plus Houston are very expensive places to live. Any other city around there is also expensive thanks to taxes and raises on costs. Next time look at the whole picture instead of one narrow perspective about careers. I stay here so I know the struggle unless you have high career paying jobs.
Is there anyway to keep paying the same taxes and at the end of the year if you make yoo much just owe the IRS instead of getting a refund
Would you say that the best time of the year to work overtime is in the early months?
There is no best time to start working over time unless it's in the beginning of the year. Atleast from I understand from the video. He explains it as playing catch up with money for the government basically
I could’ve sworn I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
depends on state and tax bracket. Plus how you file. so many factors
Hey what about the money you don’t get back from taxes? Doesn’t that increase each paycheck as well?
yea but aren't tax brackets progressive?
so its worth it to work overtime?
Good video
Thank you
What I don’t understand is why do you end up in the same tax category as the tech guy when you work more hours to reach that pay rate?
Because you get taxed on how much you make not how much you work $250,000 is what gets taxed not what you had to do or how much time you had to spend to get 250 K
You said 8.53% but the video show 18.53%, which is it? 5:17
I always have private Snickers in my head when I hear somebody say that they don't want to work overtime, or complain that the overtime will just all be taken by taxes. The same people would gladly take a pay raise that might put them making the exact same amount of money as they would have if they had worked the overtime, and guess what they pay the same amount of taxes.
Difference is that person is working just 40 hrs while the one working overtime is working a lot more hours for the same pay. Pay raise is better.
@@edocsil1635
Of course it's nicer to make more money for the same amount of hours or less. But that has nothing to do with taxes. Also, if you assume that you're getting time and a half pay for overtime, like most people do, then working overtime is like working a second part-time job that pays you 50% better than your regular job.
The reason they think they’ll be taxed more is the GOP tax bracket myth. Despite the reality that you are only taxed at bracket rate for every dollar you make into the bracket and every dollar you make below the bracket is taxed at a lower rate. Republican politicians lie and claim your tax bracket is how much you are taxed for every dollar you make. This is done to trick the middle class into voting Republican and being sympathetic to the upper class they have nothing in common with rather than the lower class they do have things in common with.
@@duckhawkninja3614
It still doesn't make sense even if you believe the various myths like the leftard myth that the rich are the only ones getting hit with the eye taxes, or that the low-income pay their fair share.
The simple thought process to me is if you would welcome a raise from $80,000 a year to $100,000 a year, but don't want to work that extra overtime to get the $20,000 difference, because of taxes, you're a freaking idiot. If you're just lazy and don't want to work an extra 7 hours a week to make the extra 20,000, that's a fair argument, but don't blame it on taxes.
@@rockymntnliberty your second myth isn’t so much a myth as it is a matter of perspective. Fairness isn’t exactly something that can be objectively measured.
Facts.
YOU EARNED MORE MONEY YOU PAY MORE TAXES. THATS THE RULE!!!!
Every single bit of it seems like theft to me lol
Does anyone else feel a little dumber after watching this?
Bro, did you record enough videos for the entire year?? All this content omg lol. I can hardly post 1 video/month.....
Brian Fung he’s making up for lost time lol respect the pharm informatics grind btw Brian
@@igol7_26 But he's making my life hard! Paul is both my mentor and my competition - and he is killing this content game haha. Also, appreciate the support my man!
These people you complain about at the start arent wrong. If you work 40 hours you shouldnt be broke. You shouldnt have to work overtime to just make it.
To them the overtime isnt worth it when they want the free time. Dont be a corporate simp
I would comment that if working a little bit of overtime puts you into a higher tax bracket yes and that specific instance it can cost you more than it's worth but if you're going to be in the same tax bracket regardless or if your tax only goes up like 2% but you made 10% more because of the overtime it's not hard to do the math but math is hard for most people
I could’ve sworn I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
Conclude, yoy pay more tax.
Overtime does increase your taxes and is simply not worth it. The more you make the more the government takes. If someone who is making 250k annual salary at 40 hours a week is totally different than someone who made 250k working 80 hours a week because of overtime. Of course you will jump in a higher tax bracket. What is there to understand? The more you make the more they take overtime or not. There is no getting around that reality.
I could’ve sworn I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
@@ryan1993ish what determines the %%%%???
@@didiash federal government tax rates for the fiscal tax year determines the tax rate……. it used to just be like 10% for the first tax bracket at one point but they raised it up to 12% last year for the first tax bracket and sometimes they adjust the dollar amount for the different tax brackets as well……. for instance, if they decide to make it 15% next year for the first tax bracket they could raise the tax bracket to be $1-$50,000 instead of just $1-$40,000…… which is good if they raise the tax bracket because that can help some people cause if you make $50,000 a year then that means you’re only in the first tax bracket and don’t get into the second tax bracket and you could save money on your taxes, if you’re part of that lucky minority that Benefits from the adjustment (probably not…..but maybe)
new subby : )
More that 1/5th goes back to taxes! .......Brah
ok brother but no nurse makes 160k a year that is insane. Thanks for the video!
Look at state records. In Washington I found several regular RNs making 300k a year and many many nurses making over 200k a year. They can work unlimited overtime.
I'm a nurse it's possible but require lots of overtime and experience or a higher degree. Nurse anesthetist make 150-300k a year. Nurse with an associate degree with 20 years experience(not a supervisor just a regular employee) at my hospital makes $55/hour (103k a year working 3days a week 12hour shifts). With overtime can clear 200k but very miserable life working that many hours. Not to mention with nurse shortage they give $100-350 bonus per shift depending on the time of year.
@@-ANT-69 exactly same point I just mentioned. Sure you can get this money back at the end of the year but your body is stressed from too much overtime. It's not worth it. A person is better off working a decent job with less demand for their bills or working 2 Jobs instead of the taxes needed before tax return. Overtime is not worth it on the employee.
Travel nurse yessir
Travel nurse
that is not how taxes work bro. sorry
So overtime isn’t worth it
Overtime is worth it. You are not taxed more or penalized for working overtime.
@@PaulTranPharmacist yes @ Paul Tran Pharmacist I could’ve sworn what you said about catching up for new tax bracket is false cuz I just learned that this is false because they tax each dollar Not predicting what your end of year amount earnings will be ……… Example: $1 through $40,000 is taxed at 12%……. $40,001 through $85,000 is tax at 22%……… $85,001 through $135,000 is tax at 24%……… The whole $135,000 is not taxed at 24% just the last $50,000, while the second $45,000 made was taxed at 22%, and the first $40,000 you made was taxed at 12%.
Work harder milions illegal immigrants depends on you🐱😀
So therefore YOU ARE going to pay more in taxes because there is no way around making more and then being in SAME TAX BRACKET 😒 so once another tax bracket level is hit , your taxed based off the numbers you make soooo you definitely are being taxed more 🫠
No one should have to work over 40 hours to pay the bills. R/antiwork