I have a fulltime job where am working overtime.My question is, would i pay less on taxes if i just worked my full time on this job and then get another part time job without having to work overtime?
2007-09-03 15:42:32 · 6 answers · asked by johnbecker00001 2 in Business & Finance ➔ Taxes ➔ United States
You would only pay less taxes to the extent that your income would be lowered from the part time job in comparison to the time and a half you should be making from overtime. Small chance that you could earn too much overtime and land in a higher tax bracket, but resulting increase in taxes withheld should offset most of that.
Where you want to be careful is if a second job produces small paychecks like $200 or less, it may not trigger enough tax withholding, and you can end up with a surprise tax bill at the end of year.
Either way, check your withholdings with a calculator at irs.gov, especially this time of year. It will roughly let you know your position and you will have time to adjust if necessary.
2007-09-03 21:55:55 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You also need to consider the maximum social security tax. At one job, they will stop withholding at 97,500 in 2007 (it goes up each year). if you have two jobs, they will both keep taking it out. you claim the excess paid at the end of the year.
If you just want to reduce the amount coming out of your paycheck, increase the exemptions on your W-4 form (as your HR person for a new copy and what you currently have down if you don't know). If you only work Overtime every so often, the paycheck with overtime will assume you are making that amount all year and withhold a lot more taxes. You'll just get a bigger refund at the end of the year because the rate of earning doesn't matter, just how much during the year.
2007-09-03 16:10:55 · answer #2 · answered by Patrick S 3 · 0⤊ 1⤋
Your better off working and doing overtime at your fulltime job as you get time and half for working, so you;ll end up better off that way. You will pay more taxes up front as you'll make more, but if you work another job you'll pay less taxes. but when you file your income tax you'll still pay it than, so better off making time and half than the 2 job way.
2007-09-07 14:46:12 · answer #3 · answered by nappa 7 · 0⤊ 0⤋
I even have 2 jobs and regrettably you may desire to pay 22% tax on your 2nd earnings. so £ 668/22=£146.ninety six. i don't comprehend why you merely paid £one hundred sixty five. on the 1st pastime. over what volume of time did you earn £6530.
2016-12-12 17:28:00 · answer #4 · answered by mckernan 4 · 0⤊ 0⤋
At the end of the year, all your earned income is added together and taxed, it doesn't matter if you earned that same income with one job or several jobs.
2007-09-03 16:04:03 · answer #5 · answered by edandyvonnemoore@sbcglobal.net 3 · 0⤊ 0⤋
Assuming that the total you earn is the same either way, your total tax liability will be exactly the same either way.
2007-09-03 22:50:13 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋