Currently I am in the 25-30% tax rate. I can easily find a part time job that would net me another 30K. Should I hold just give up 30% of the additional income or even more because this additional income will push me into a new bracket or is there something I can do to keep more of the money I work for. Will I be working for the Government? At what point is it a waste of time?
2007-05-02 11:17:42 · 4 answers · asked by ARM 6 in Business & Finance ➔ Taxes ➔ United States
This will be a second job, so transportation from the first job to the second job will be deductible. If the part-time job is as an independent contractor, you can deduct job-related expenses directly against that income, instead of on Schedule A subject to 2% of AGI.
Another consideration is that if you already have earnings of at least $97,500, then the additional income from the part-time job will not be subject to 6.2% Social Security Tax.
Your additional income may make it easier for you to max out on your 401k at work, further decreasing your overall taxes.
Whether you choose to take on another job is a matter of how much you would like the extra income and your energy level.
2007-05-02 13:29:48 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
Only you can decide whether the value of your time is worth the amount you'll have left of an additional $30K after you pay the taxes on it.
2007-05-02 19:38:02 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You said you can EASILY find a PART TIME job to NET another 30K. I don't believe you. I can't find a FULL time job that pays that well. Bosinianinmo's answer is good regarding withholding rates.
2007-05-02 19:14:57 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
Your probably should figure your marginal tax rate and have it withheld at that rate.
It becomes no longer worth it when the tax rate exceeds 100%. Since the max is 35%, that won't happen.
2007-05-02 18:41:20 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋