Marginal Tax

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image showing Marginal Tax

thedeadlysheep on November 26th, 2019 at 12:13 UTC »

ok but i dont earn 100k a year. what do i do about that?

Muellerc on November 26th, 2019 at 12:58 UTC »

I'm a teacher, I teach personal finance at my school but I'm young. I've had other teachers, tell me they've turned down raises because it "would bump my family to the next tax bracket and we would lose money".

Unless you're receiving government benefits for childcare or health insurance (u.s.) you will never lose money on a raise!

Edit: I picked two examples and should have indicated of course any government benefit you can earn your way out of. Lots of good replies that are going to make me google around for how those specific situations work, especially the health insurance coverage changing based on salary.

Anyone bashing my colleague here is extremely short sighted. Many people rely on their parents to teach them about finance as schools historically didn't offer it as a class, nor require it. This makes it very easy for generational misinformation to spread. We're in year two of offering a personal finance with hope's of convincing everyone to make it a graduation requirement.

OriginalRound on November 26th, 2019 at 15:18 UTC »

I'm flabbergasted at the amount of adults that don't know this. I have had coworkers refuse to work overtime because it would bump them into the next tax bracket and they think it will make them less money.