Thanks V B. Is there some kind of table I can look at to see if a job switch is worth it?

Question

I'm going from $25 to $28/hr.

Answer 1

Always make as much money as possible.

You can not come out behind by taking a job that pays more.

Answer 2

Since the tax rates are much less than 100% you will ALWAYS come out ahead tax-wise. Where you COULD lose out is on benefits. If your $25.00 per hour job covers all of your healthcare premiums and the $28.00 per hour job only covers 50% you could well come out poorer with the higher paying job.

A buddy of mine recently switched jobs for an extra $6,000 per year. He got cocky when he left and burned a few bridges. The job he left paid 90% of all of the healthcare premiums including for his family. The new job only covers 90% of HIS healthcare. He has to pay 100% of the cost of his wife's and kids' coverage, almost $700 per month! He came out $2,400 per year poorer with the higher paying job and since he burned those bridges, his former boss wouldn't think of re-hiring him.

Look at the BIG picture before you make a job move. That extra $120 per week might look good all by itself but could be a lot LESS once you consider any other costs. Commuting costs can eat into any extra money, especially at $3.00 per gallon for gas and don't forget to consider commuting TIME as well.

Answer 3

Go to irs.gov and pull down form 1040es (that's where I got the numbers.)