How Taxes Change when you Make More Money
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- Опубліковано 8 вер 2024
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ABOUT JASMINE DILUCCI, JD, CPA, EA
Jasmine DiLucci has specialized in tax since high school when she first became licensed to represent taxpayers before the IRS.
Now as a tax attorney and CPA, she works with individuals and business owners across the nation to on Tax Planning, CFO Advisory, and IRS Tax Resolution
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Disclaimer: This information on this channel is for educational purposes only and does not constitute professional legal or tax advice.
# #jasminedilucci
She’s probably an employer trying to convince her employees why she doesn’t wanna give them a raise. 😂
She’s trying to get those “elite employees “ 😂
Says someone not making that mount of money?!
@@Waterworthjr damn you must have years of study and experience in the field to have such an accurate representation of your own ignorance.
@@jonathantalley6110 thanks
00@@Waterworthjr
When she said “I’ve seen people make more and see less on their check” I was like “No, you haven’t.”
Maybe if they put their entire raise in their 401k and other pretax deductions ? That’s the only way it’s possible.
@@just_one_more_nobody true!
Unless their raise was in the middle of a year and she's talking about each paycheck, not someone's actual taxes. If you have your deductions set wrong, your take home can be lower. Your actual taxes aren't, but your weekly (or biweekly) take home can be.
I have, it happened to me and alot of people i know. But im in canada so...
@@CelicAWDno you haven't. The Canadian tax system is also progressive.
"So she's dead wrong" 💀😂
Slightly nice way of saying "what an idiot!"
😂
They are both right. Nobody is wrong.
Except she's not lol. 100,000 jump will completely fook u. You make more. But they will take atleast half of your new bracket.
@@Changemymind1 how does an extra 50k screw you? Sure, 50% is unreasonable, but you're still making more. But, the only way it will stop is if the American people revolt.
What confuses so many people is they don't realize the amount withheld is not necessarily the actual tax they had to pay.
Right? I don't know where they think the refund comes from lol
Refund? What refund they irs didn’t refund not a single penny because I was in comparison to a family of 4 above poverty levels. Took 40k from my paychecks and didn’t even see a penny of refund. BS there is tax disparity specifically to single people with no kids.
Odd. I got a part time job to add to my retirement, which was good enough under Trump. Since then, had my wife, a RN, and I not pulled out 14K in pretax deductions AND EXTRA IRS DEDUCTIONS, we would have owed 14K. My part time Job has 55% removed. My retirement is at 38% removed, my wife's is right 42%. We literally bring home LESS than in 2017 when I retired.
Elaborate
@lightwork5414 The amount withheld from your paycheck is merely an estimate, not the actual tax, based on the annualized gross income of the paycheck and other information about your tax situation you can give your employer to make it more accurate. You can request they withhold nothing except social security and Medicare if you want
So if you make double one period because of overtime, your job will assume you make double all year which may put you in a higher bracket that needs more withheld. Since the estimate was too high, this becomes your refund and you are made whole. It doesn't effectively become your tax unless it is kept after filing. You can also instruct your employer to take out less in future periods to avoid having to wait all year for a refund.
On the flip side if you have two jobs and don't fill out the form correctly to inform them as such, they may assume you are in a lower tax bracket and need less withheld. Then when you file you owe the difference plus potential penalties if you underwithheld too much.
This is one of the biggest reasons we need better financial literacy in schools.
You’re not wrong. I genuinely wish we had spent more time really drilling into taxes and loans and mortgages in math classes throughout school. I got one semester of that in college, which was great! But one semester doesn’t cut it IRL.
@@prudentreality also, in college, it's already too late because you're stuck with student loans already.
Better?!? Baby they don’t even teach financial literacy in public schools!
Maybe we just need a flat tax. Make it simple.
Do they even teach math in public schools? So many kids are below the normal math level. It is crazy
My BS alarm went off when she said she knows people who get raises from 100k to 200k.
Inflation sucks
It happens I went from 2200 a month to 5 to 7k a month at the same job
@@wooterrackz2699 same here, almost exactly. But our pay raises are nothing compared to going from making 8k+ to making 16.5k+ at the same job. Especially in a single jump.
@@wooterrackz2699same we went from 99k to 192 k in 13 months
I mean, my friends father went from 250k-500k in one single raise.. For a year till they realized they could hire a kid fresh out of college and pay the new guy only 100k a year lmfao
I know most people don't know how to do basic math. So the only way you can go from $100k to $200k and make less is if everything over $100k is taxed 100%.
Sigh, your response had no up votes and the ignorant people that have no idea have hundreds of up votes. It is so sad. Have my up vote.
Even then it would be equal and not less
Ok I have a question is this not taught in schools in America?
I learned this in school last semester
@@ashgaming2651 teaching about interest specifically no, though a large part of the problem is many many america read at under a highschool level and also struggle with math. Combine that with people that that level being more likely to just accept what someone else tells them without actually thinking hard about it and people they trust not knowing the advice they are giving is wrong, misinformation spreads.
@@starfreek101op is wrong though. Because people like the first lady think the tax rate increases on the first 100k as well. Example say hitting 100,001 takes you from a 10% to 55% tax braket. If the first 100k is taxed at 10% that equals 90k. What they believe happens is all money earned is taxed at a higher braket, so if you earn 200k at a 55% tax rate you would still take home 90k.
I have literally seen happen on my own paycheck. Not precisely in the way described, but there were times when the overtime I worked was cancelled out in my pay by having more tax taken off, as though I hadn't worked ANY overtime. It was only when I put in a ton of overtime, putting that pay period into the next tax bracket, that I saw more on my paycheck.
It depends on if your in an income tax state
that sounds like Some BS. no employer is allowed to miss report your overtime pay or w/e. did you check your 401k deductions because your % contributions will BE MORE because you made more on that check for the overtime hours.
man math is HARD..
i'm was living paycheck to paycheck , Toronto Canada , this not theory or misinformation this happened to me personally got a raise and my pay check was less , now whether it is true i get it back on my yearly refund in the moment of day to day week to week paycheck for example say my weekly pay check is suppose tobe $500 and i get back $425 , i still have 500 worth expenses short $75 for that week . progressive taxes does not mean shit to my daily living . some of us just have different realites i guess
I live in one of the highest income tax states in the country. Making $100k a year you're taxed about $28k, netting $72k. Making $200k you're taxed $65k, netting $135k. This isn't including dependents, childcare, or the hundreds of other deductibles. Making $135k after taxes, is in fact better then making $72k.
dude paying $65k to the government a year is wild to me in general . $65k is still a whole lot to $200k a yr . maybe at $500k a yr $65k is justifiable .
she’s probably saying the person got less because they decided to work less considering higher pay but was seeing less on their checks . higher tax brackets have less incentives and bare more of the burden for society at large .
Income tax rates are set by state?? That's wild. What are the rates and thresholds where you live?
@@RhysMoggyou are not living in United States i am assuming? Every state has different tax structure. That is on top of Federal Tax. Some states have no tax
@@danielkim672 Yeah I live in the UK. That's crazy to me - you all earn the same dollars. Presumably inflation does not vary by state, so that seems a very unfair system...
We all pay the same income tax rate, regardless of where we live. With the exception of the tax-dodging super elite, that is.. 🙄
@@RhysMoggit's like that only in the US and they have some laws too that are state laws and do not apply to other states
I had to convince my dad to finally take a raise because he didn't want to be put in the next bracket. He refused to believe me until he went and finally talked to a professional. The majority of older people don't seem to understand taxes, but they sure do have lots of opinions about how it should work.
And theyre the ones who voted the laws into place.
Oh you support socialism don’t you
@@BrandonDenny-we1rw
And this is why we live in a world that is on fire.
The people who don't know what they are talking about have really strong opinions and vote making the world a worse place over and over again.
@@BrotherAlpha For now.
As much as everyone fears AI its actually going to be our greatest achievement.
Hard to embezzle and be corrupt when a program with no feelings is quintuple checking everything you do.
We understand taxes. You take a raise and get taxed more.
If you make $200,000 a year living in the region of Virginia, USA, you will be taxed $62,884. That means that your net pay will be $137,116 per year, or $11,426 per month. Your average tax rate is 31.4% and your marginal tax rate is 42.2%.
If you make $150,000 a year living in the region of Virginia, USA, you will be taxed $45,924. That means that your net pay will be $104,076 per year, or $8,673 per month.
So for that additional 33k is it worth it?
Of course she's wrong, what impressed me is her level of confidence and authority when saying the things that is wrong
... but she's a witness😂
Of course, you have no idea what she is saying because you agree with this lady who gave an unrelated answer
@@dee7665 This is some basic stuff man
@@dee7665this is basic tax law. If she really did see someone make less after a raise then that person needs to go sue thier employer for wage theft cause your tax rate on the original wages stays the same so you would make the same plus what’s after taxes on the new 100000 dollars
Dunning-Kruger
She said “ the more tax brackets you move into “ the plural part is what’s important. And the even more important part is she’s talking about a specific type of wealthy person moving into a new realm of wealth. And it’s definitely more common in places with higher taxes.
So, you're saying she understood how tax brackets work but just failed at math?
This is a great example of someone admitting to not being in the income bracket they claim to be in without realizing it.
Could be someone is playing with her paycheck and pocketing part of her income.
@@elmersbalm5219 A charitable interpretation, but very unlikely.
Could be that she is trying to discourage competition by feeding prospective employees false information so that they are less likely to try and make more money.
Wanna be my lie-er trying to take over the Wrld.
It's also what happens when people mess up their taxes or have some friend or family who 'knows someone' do it.
I was 100 percent going to swipe out of this, glad you stepped in. What a fabulous way to keep people impoverished. What you dont know CAN hurt you.
Yah she should have reacted with a facial expression or body language first so it's clear before people swipe away from the explanation.
Not only is she wrong, shes dishonest. Theres no way she doesnt know about this already
You'd be shocked how many people on the internet know exactly zero about the BS they are spouting. We gave everyone a megaphone. All the smart people are busy working and living their fulfilling lives, all the dumb people are sitting at home all day on their phones making stuff up for attention online to get that dopamine hit that makes them finally feel alive. Moral of the story: Consider everything on the internet is a lie until proven factual.
You would be surprised how misinformation disrupts logical thinking on this issue. And it goes back decades. In the 70's, when I entered the workforce, people would say 'I don't want to work overtime because I end up with less money'.
You get less of the raise than you did of the original pay. Your total pay goes up, but each raise you see less of your raise reflected in your check
@@drigondiiyou still make more money. let’s say you make 40k and it’s taxed at 10%, you then make 36k. if you get a raise to 50k, and at 45k, you enter a new 15% tax bracket, your 45k is taxed at 10%, and the 5k over the bracket is then taxed at 15%, so that’s 40.5k plus 4.25k which is 44.75k.
@@lucasstackhouse3986 Don't use numbers to explain things to someone who doesn't understand how numbers work.
Good job correcting this lady. Takeaway: just because someone talks with a lot surety and confidence doesn't mean they are right or know what they are talking about. Or that they are even telling the truth. Always have a good CPA and stop listening to idiots on social media.
The real problem is that someone will just perpetuate this narrative. If you make 100k a year and you turn down another 100k in the form of a raise you are 100% an idiot to think you will be taking home less.
The percentage of money over that tax bracket does get taxed at a higher rate. So her point is accurate that you do get punished for making more. However, she’s wrong in that you still will make more, despite the higher taxes.
@@youngvisionaryent.2759 I mean...you aren't really getting "punished" for making more.
But regardless, her point was NOT that you get punished for making more anyway.
Her point, as she stated, was that you can end up taking home less money after a raise because of change in tax bracket. Don't try to change the point she made. That was it. Nothing more, nothing less. And it is objectively wrong.
@@youngvisionaryent.2759Did you not listen? The white woman is correct.
@brendonw456, you are in fact, being punished. We are so used to that facist socialist prigessive tax... but have to pay higher % for making more money its actually unfair. The only equal and fair its a flat rate tax.
Thanks for the information. My boss was going to give me a raise for doing a good job. What a asshole, I'm going to have him cut my pay instead.
I own a small Accounting Firm and I love your videos. So much fake advice on social media by people who are loud and confident but don’t know what they’re talking about 😂
Lmmfao all day 😂
The louder you are the dumber I assume you to be
Exactly. We have way too much of that in the world. Its wild.
Omg so true why do they even open their mouth and pretend like the internet will catch you bruh 😂😂😂
Thank you! As she was talking, I was saying aloud, "You are so wrong!" I heard this so many times when I did Tax preparation! 🤦♀️
I've corrected many people I've worked with that absolutely believe that working overtime is not worth it because the government takes most of it out in taxes.
Ignorant (not meaning stupid) people only hurt themselves.
She said what management will tell you to keep you from wanting a raise. Of course, you pay more taxes, and you also make more money. And a tax pro can help you place those additional dollars appropriately, so even if your take home is the same, your additional monies are working for you.
Lol. That's what management told me.
$Yes but how much more? @250k you’re essentially paying 40% in taxes…
Bullshit
@@00Tenrai00 If a person makes 250k, theyre taxed closer to just above 30%. But at the end of the day, even after taxes, a person making 250k would still pocket about 175k. That's a net positive imo
@@EGreeneConversations that depends on which state you reside in…
THANK YOU it is so difficult trying to explain this to people who refuse to even try to understand. Like no when you take overtime you still make more money no matter what. Overtime and pay raises ALWAYS result in MORE take-home pay. ALWAYS!
Not true I myself experienced this myself when my 58 hour check was ten dollars less than my 57hr check both were a week pay period same company one week after the next one that was before Reagan was in office
@@leonkellerhuis3642 that's bizarre do your social security contributions work like Canada's pension plan where you only make payments up to a maximum and then no further payments for the rest of the year? Maybe you had reached your maximum contributions for some benefit plan making your last payment on the 58 hour cheque and then didn't have that deduction on your next paycheque the 57 hour one. If you had less take-home pay then it wasn't from marginal tax brackets it could even just have been a mistake in payroll.
My state a number of years back had a specific deduction for people making under a certain amount of money per year. If your raise pushes you from slightly under the like to slightly over the line you could miss out on a $500 deduction.
@@matts1166 that’s not progressive tax brackets though that’s a benefits program with a cutoff line.
@@leonkellerhuis3642 I don’t get why my last reply didn’t show up but there are any number of reasons that could have happened that don’t have to do with progressive tax brackets with the simplest and most likely being that payroll messed up. Does your nation or state have any benefits programs that you pay into up to a hard limit and then you don’t make any more payments for the rest of the year? You could have finished making your last payment on the earlier cheque and had higher take home on the second because you didn’t have to make that payment anymore. Like SS do Americans only pay so much each year into SS and then the payments stop for the rest of the year? That’s how our CPP and EI works in Canada. The programs only pay out so much and so you only have to pay in so much.
This is what they should have been teaching us in school. How to understand taxes and how to wisely invest and use your money.
No.... thats exactly why they dont. And dont even look in class rooms today, most students cannot read. or point out a subject in a sentence. America makes you a dumb worker, not a business leader.
Taxation is THEFT.
They don't want students to learn about finances because then they'll quickly realize that going to college is a scam. Especially nowadays.
@@anubisdelavoid2113I hate to be conspiratorial, but it's shockingly bad...
@@bluex217 not conspiratorial, they admitted it basically.
I once worked for a really really rich man. He once said he gets excited about paying more tax because the more tax he gets to pay means that he's getting more money himself.
She really expected people to believe that you can literally double your income and your paycheck will get smaller. Wild.
they do believe it..still
Yeah, she should have definitely asked her boss to take the raise back 🙄
Because she is selling some BS courses to people in the 10% tax bracket
So many people just parrot this stuff. My sister even got a slight raise and just matter of factly was like great now I get less money. Just gotta smile and shut up cuz some people would rather be dead than wrong.
She is correct that doubling your pre-tax income doesn't mean you've doubled your income due to taxes.
She is every winebox aunt at Thanksgiving. I don't even try to explain. I just nod and pull myself a chair at the kids' table. "Uncle has had enough of the grown ups, pass me the gummy worms".
She me bay off on the details, but I shouldn’t have to pay a higher percentage with each rise in brackets. You’re still being penalized for success. If I paid the same percentage of everyone in lower brackets…I’d still be contributing more as a whole.
You're the aunt he was talking about @@robertwilliams1167
@@robertwilliams1167okay so someone who makes 40k should pay the same money in tax as someone who makes 100k? Then if so would you be okay with sales taxes going up? If you make 40k you would say fuck no. If you make 100k you wouldnt feel that as much. Its a system made to be equal and equal doesnt mean fair it means equal.
@@shinreed5927 equal means the same. I’m firm with equal. I shouldn’t have to pay a higher percentage. If we both paid 10%…you make 40k, and I’m at 100k…I’d still pay more overall, but at the same clip. I didn’t say we should both pay the exact same amount. And, why so fairness bad? Why should I have to contribute more to a system and receive the same amount of services as you? It’s easy to say you want someone else’s money taken from them when you get to keep another percentage of what you earn. I could care less about a higher sales tax…I’m not a huge consumer. I mostly save and run a strict budget. And yet, the left wants to penalize me every step of the way. I don’t have a degree, I work a blue collar job. I’ve baited my butt all the way to the salary I have. My work and consistency shouldn’t be penalized because some people haven’t developed any skill that’s worth more than the 40k they make. So, I definitely don’t have a problem with a system that runs fairly. People like you want to keep taxing successful people to provide for those who can’t, yet we just end up with a bigger more expensive government that doesn’t get anything done. I don’t like seeing 1/3rd of my pay go before I get it. Property taxes, taxes on everything I buy, taxes on money I’ve invested. It’s bs. It’s not my fault or responsibility to be forced to contribute to a system that is broken. But keep preaching.
I'm eating some right now bro (Haribo Bears\Colas gummies) on God lmao ahah fax!!
I be at the kids table to with my knee's crunched up lol.. They are by far more intelligent, rationale, honest, & fair than any adults In the adjacent area's ahah frfr.
As a Certified Financial Planner and Enrolled Agent, I like Jasmine, she’s one of the very few tax experts who keeps it real. So many people talk about taxes without proper accounting background and deep understanding
If someone goes from $100k on W2 to $200k and everything remains the same, there is no way possible that they got smaller checks. Absolutely no way.
Yeah. It's not possible. Anyone claiming that this is possible doesn't understand how marginal tax brackets work. There are zero situations in which you earn more and see less.
I learned this soon after I got a raise. I freaked out thinking they'd "take all my money" and so added just enough to my retirement that the remainder would keep me in the lower tax bracket. Then somebody shared this info with me and I realized I was limiting my income for no reason at all.
You weren't really limiting your income, just moving more pre-tax portion of it to savings/investment/retirement.
@@jovalleau Oh I know, but I still felt silly about the whole thing. It's probably going to make for more paperwork down the line.
How is that silly? That's literally the reason to use your retirement savings account. The idea is to push the tax burden off until you retire. Most people do not have any income when they retire. This means that you'll be able to take out your money from your retirement savings account at the lowest tax bracket when you retire instead of paying the higher tax bracket now.
@@vengefulspirit99If you make less now you should invest in a Roth instead of traditional. Many will end up in a higher tax bracket so paying taxes now is better than investing pre tax income
@@vengefulspirit99 he finds it silly because while he is still benefiting immensely and future self will thank him... he did under false pretenses.
My boss didn’t even understand it and was warning me that if I got a raise my taxes could go up significantly. Thankfully I knew better and did my own research.
Your boss understands perfectly. They didn’t want to pay you more.
@@thinkingplayer2648I came here to say just that. But at the same time, I've seen some IGNORANT supervisors. Now, if HR/payroll gave this advice, I'm 100% calling them out in a public way.
yes even in the UK the tax rule is the same, its true what she first says you'll not see 75k /12months, but its misleading again because your not even going to see that division if you only earned 75k, its amazing how confidently she says something that is completely incorrect lol
Its sad that people are out here spreading misinformation without doing proper research. Im thankful for your video
When you do overtime at work. Check how much more taxes come out… she’s right on some of what she says.
Research is an American problem. Too many people bypass that step before they open their mouths.
@@diamondunicorn2421 keyword is SOME
I'm horrible at this stuff, so help me out here. What I'm getting is, for example....My normal pay is 75k, but I made 100k via OT. So say that extra 25k put me in a higher bracket. So only that 25k gets taxed at a higher rate, while my normal 75k is taxed at the "normal" rate?
Yes… spot on.
Learned this years ago.
Working lots of hours overtime hoping to see a nice paycheck… the only one getting rich was Uncle Sam!!
On top of that … now after working 45 years and retiring, SS takes taxes out of my check…. that money was already taxed!
HOW FARE IS THAT !!!!!
"I know people who have gone from making 100k to 200k and actually seen less on their cheque" this immediately is a huge red flag this lady has no idea what she is talking about, and the same is true of the people in the comments who are trying to defend this woman, she clearly has very little undersranding for how tax brackets actually work, and how the tax system functions.
I'm so glad someone knows this. She is creating terror. I've personally heard people say they don't want to earn more because they are so afraid of taxes. This mentality is ensuring poverty increases.
It's actually possible for people who budget by percentage and thus inflate their investments and lifestyle while paying more percentage tax leaving the person with less. People who aren't willing to create a counter case for both sides are being lazy and low effort
@@lianghou7000
Sorry, I must have missed the part where we're talking specifically about budgeting as a percentage of pre-tax earnings.
My comment was pointed at a very specific quote for a reason.
@@rileyboomer8627 well you made the same conclusion the channel maker did, saying something definite to oppose the original content. First lady said some people dhe knows so of course you have to consider all cases including percentage based budgets to know which she is talking about. All you and the channel maker do is make low effort recitation of tax code, not real life
Its weird that people even argue about this after hearing "i know of people that made less on 200k on paycheck than on 100k". Thats impossible if nothing else changed. Thatd be like getting 70k out of 100k and 60k out of 200k. Thats not how brackets work. If 100k is taxed at 30%, and lets say above 100k to 250k is taxed at 40%, then 200k still gives you 70k+60k=130k. Which is more than just 70k. Its pointless to argue to % goes down because thats literally what taxes do and not what the first one said. She said you end up with less money.
That a black woman, she just be hustling, she ain’t know shit 😂
Yeah. The literal only way to see less on your check going from 100 to 200 is if everything above 100 is taxed at MORE than 100%.
I swear I find dex in the most random comments
When you enter a certain tax bracket, you lose the ability to write off many deductibles such as childcare, education, etc..
So depending on certain situations, entering the next tax bracket may result in less for you.
Most of those things are also progressive, rolling off gradually as you make more, so you never lose by making more. This is also true of unemployment, which will help make up the difference if you get a low paying job. There are edge case situations, or tabulation rounding errors, that might cause you to make a few dollars less if you got a raise or a couple of dollars a year bumping you over a bracket.
But if your employer gives you a raise of less than $10/year, find a new employer.
@jasexavier where are you getting 10/ year? 10 what? $10.0? $10,000? Heck I haven't seen .01 in over two years. My last job l, over 12 years, I got a raise twice. There's lots of employers out there that fight giving raises tooth and nail. And before you try to blame me for this I'll say that not one person has gotten a raise in my company since before I started there 2 years ago.
@@brianadamsjr2664 The point is that it's a nonsense amount to receive as a raise. No one would ever get a pay increase small enough to actually make less money due to taxes, because it would be absurd for an employer to give a pay increase that was less than ten dollars per year (that's about a half cent per hour increase). You're either going to get nothing, or a lot more than that, so your taxes will either not increase, or increase by less than your pay increase.
That’s false and never true you never make more and then get less after taxes ever ever.
YES this exactly!
She is actually correct in saying the more money you make the less you take home. Not only do your extra dollars get taxed at a higher bracket.. you added my pay more for healthcare which for many people is 10-15% of their income alone!
elucidate for me why on earth you think healthcare would be something that costs more the more money you make
@@invaderpopz because it is subsidized that’s why
Actually, if you make more money but spend at the same or lower level, you can actually lower your overall tax burden by donating money, charitable remainders trusts, deductible expenses, etc. This is why you always hear about the wealthiest people paying the least in taxes (relatively)
@@selectbrands the fact that you c bat decide to just spend that money how you’d like is the issue at hand.. I’m not advocating a lavish lifestyle and most certainly agree with the concept to live at a lower expense which is what my family does. It’s not an incentive for most people to make a few dollars more an hour when it bumps you into a higher tax bracket and now your health insurance goes from $200 to $1400.. just one example
Correct. The actual problem is when you start moving into higher tax brackets more of your hard earned income is taken to pay for resources you are not using.
Welcome to living in a society. If you don't want to pay taxes, there's always that other inevitable thing.
Thing is that’s exactly what people want. To tax more on those who earn more.
yes, as you make more money, you are providing for society because that's what you should be doing as a citizen. Your tax burden is less of a burden on you because you are richer. If people who used the service were paying for that service fully out of their own pockets, then they would either have a shitty service or have no income. It does not affect you significantly to pay more taxes if you are richer.
The other error in your statement is assuming that you're inherently working harder than somebody who is making a lower income. Everyone's income is "hard-earned." the difference is that you get to live in a better house and have security, and in exchange you can help to provide for people who need it.
@@Bobspineabletax appropriately everybody pays their fair share
@@MyChevySonicI live in India and here paying income tax is truly useless because only 2.89% of the population pays income taxes. So no, it's like living in a society but worse.
But it IS TRUE that "THE MORE YOU MAKE, THE MORE THE IRS WILL TAKE". THE HIGHER THE TAX BRACKET, THE BIGGER THE TAX PERCENTAGE. That is why you need to find tax shelters.
But I thought the rich need to pay their fair share?
No the government just needs to stop spending. @@emilybach
@jevinkames I agree with you. The government won't because it's the greedyist corporation in America!
My original comment was sarcastic. Everyone loves to say that the rich need to pay their fair share until it comes to them!
Tax shelter? Like a trust?
Tax Shelters???
I love the candid calling out of bullshit.
This depends on how you are in that tax bracket. If your raise puts you in lower side of nee tax bracket it does cause you to see little less or just a little more money. If your raise puts you in middle of that tax bracket you see some increase on take home.
So, to say that you lose money with a raise isn't inaccurate, it just doesn't cover the whole bracket.
The 22% tax bracket starts around 47,000.00 and goes up to over 100,000.00. If you are in that lower bracket you might see less.
Now you should.get back remaining on tax returns.
What are you talking about? Only the amount above 47k is taxed at 22%. All your income below 47k is still taxed at the lower tax brackets that you paid BEFORE.
Exactly; the more you make, the more you have. My accountant taught me this years ago, and he was right. Your effort when earning more is to learn how settler your money professionally.
You are absolutely correct. It is just amazing how many taxpayers are so under educated on how taxes are applied. Thank you for sharing
Many don't know this because this is an accounting question and not a math problem even though there's math involved. If you take the most basic accounting course offered at any school they cover this under payroll period and taxes. Very basic accountant knowledge.
It's when you hit the threshold of the tax bracket when there is a problem.
Well, it may not be true that you keep LESS than you would have at the lower bracket, but it is true that there’s a BIG jump in the rate, on the money you make in the higher bracket, right at the bracket where most people would think they’re finally going to be doing well.
It’s not a jump at 400,000 or above. That big % jump happens right at the bracket where you go from not doing ok, to where you think you would be doing ok, but they keep so much more of the extra money that you question why you bothered to work harder/more for it.
My issue is not with having to pay more though. I think it’s the patriotic thing to do that the more you benefit from the system, the more you should have to support it.
My issue is with how they step up the rate way more from the almost doing well bracket to the just barely doing well bracket. I will admit that I haven’t done my own taxes in a while, but I remember there being a small % increase in the brackets from one to the next, below about 100k (filing single), then a big rate jump somewhere between 100k and 150k, then small % increases again in the higher brackets.
It seemed so squarely aimed at the people crossing the threshold into “making it”. Like the rates are specifically set up to prevent normal people from breaking through to the middle/upperclass.
I never saw this discussed by politicians (during election or otherwise), but it needs to be adjusted more fairly.
I am not for a straight tax/ flat tax on everyone (hurts low income earners, benefits high income earners). But I am for a smoothly progressing rate increase, up until you cross into the DEFINITELY upperclass region of income. The rate should still be relatively low for anyone in the middle class.
Only the legalized thievery that upper corporate leaders enjoy should be in a high bracket.
The top rate in the 50s, the economic golden age of America, was between 90-92%. How were they so propserous with a 90%+ top tax bracket rate? Please explain.
@kenaultman7499 because the government didn't collect 90% of the earnings. It was a virtue signal. Steve Jobs famously paid himself $1 while CEO of Apple. The rest of his earnings were in the forms of shares and other cash equivalents, which are taxed at Capital Gains Tax, which is normally 15%
That is AMT kicking in. Basic math laid out if you read it.
Also you STOP paying social security before AMT.
@kenaultman7499 because it was for someone making $2,000,000 a year as an individual. So in today's market only .09% of Americans make more than a million. Realistically it would be LESS than .01% of tax filers paying the 91% that was the top rate in 1963.
In 2024 the top tax bracket is under 150k
So you are wrong about your comment on who was paying what. You're obviously innumerate.
The bottom 50% of Americans that file taxes don't pay federal tax.
Just check the IRS form 1040's instructions. It will tell you exactly how much tax you are liable for. Also, for those that make that type of money probably would benefit more from itemizing their deductions instead of taking the standard deduction.
The first part of her statement is correct, the more money you make the more the IRS will take but there is something worse than paying income tax and that is having no income to tax. I would very much like to see the tax return of someone who went from 100K to 200K and their paycheck was less. My very first client when I started doing taxes had such an issue, turns out because of her pay increase she was no longer eligible for the Earned Income Credit so no big tax refund like she had grown accustomed to, swore that the new guy made a mistake and didn’t know what he was doing. Long story short, my supervisor redid it, we even did it by hand and explained to her why she was better off, but no large refund so she wanted to return to her job and give up her pay increase.
Well, you can't fix stupid.
Thts big dumb
Thank you.
So many people I work won't do overtime because they think most of it goes to taxes. I try to explain it to them. They don't listen. It's very difficult to change people's biases.
I've given up trying to explain to people that even if you put yourself in a higher tax bracket for that pay period it will all even out at the end of the year. Ask anyone making $90k/yr if they want to make $120k/yr and they say sure. Tell them to work 10 hours a week overtime and they complain about all the taxes taken out. But tell them the IRS doesn't look at how many hours they worked that year just the total amount and they look at you like a deer in the headlights.
Excuse for being lazy
@sparksmcgee6641 it's actually amazed me over the past 15-18 years of my life how many people are CONVINCED they'll lose money when they start making more. These are people at all stages of their lives, too, so they've been paying taxes for years at that point.
Like, how does this not make sense to so many people, lol
I've had one guy turn down a bonus because he didn't want to be thrown in a higher tax bracket, and these people vote.
Most ppl work overtime for their next paycheck, and not for their tax return. 8hrs of overtime can easily pay less than 8hrs of straight time on your next check. That's why ppl don't like to work overtime.
You will never ever make less money after taxes when you get a raise. It is literally impossible.
@fiveoneforfour it is true. Income is taxed in parts. I don't know ow the exact brackets, but your first 20k is taxed at 10%, and then your second 20k is taxed at 15%. When you hit a new tax bracket it has no effect whatsoever on income from the first bracket. So it is literally impossible. You've been listening too much right wing/libertarian propaganda.
Believe whatever you want. But this is 100% true. I do my own taxes.
@@scrumbles If we're talking about just the tax rates, yes, it's true but no, it's not impossible because there are income and AGI limits to certain deductions and tax credits along with general benefit people receive based on their income. There are plenty of sweet spots of income in the tax law that qualify you for specific tax benefits but either get cut off or reduced as you make more so it depends on where your income is and your personal history.
I don’t know how many times I’ve tried to explain this to people over the years. Thanks!
Wow people really don't understand how taxes work. This is something that should be taught in schools. If you get a raise, your take home pay will NEVER be lower than it was before. It is not possible. If you disagree, I recommend learning how to calculate your taxes by hand. It will make everything much clearer.
It's frustrating when people can't take in new information, but it is also disheartening when scumbags lie and take advantage of the less educated. The first lady spouting crap is obviously lying because there's no world in which you end up with less money after a raise. "I know a person" is a bold face lie and it'll be interesting to find out whose interest she serves lying to normal hard-working people like that.
Accounting and tax (laws, best practices) needs to be part of the schooling curriculum.
Then we would be able to beat them at their own game. That’s what the DON’T want.
It's usually an HR/payroll error where they mess up your withholdings. I have had multiple instances where my take home pay went down after a raise.
Who’s ever taking my taxes out? I don’t understand if I make a salary wage and I do the same hours every two weeks why does my pay go up and down? 🤷🏾 I could be wrong but if I make $50 a week, if I get $50 a week every week then $48 one week $52 another week $49.53 another week doesn’t add up.
You still aren't actually "taking home" less even if the withholding was messed up. You'll get all the extra refunded. That's actually the majority contributor to most tax refunds. Too much was withheld, so it's given back to you. And vice versa when you end up owing.
Your take home pay is exactly the same, you're just not getting all of it in the immediate and interpreting that as you receiving less. This is still...not good (because you just gave the government an interest free loan), but you aren't actually down any money
@@kevinjames991turbo As for you...well first, you don't make a "salary wage". An employer gives you EITHER a salary OR a wage. They're mutually exclusive.
And there's just...so many things that can contribute to this. You could have deductions at play. Depending on the employment contract and state, they could be taking deductions out for things like your uniform or tools that you damaged and stuff like that. They may be correcting for past errors, such as the $48 one week...they would then give you the $52 the week after because an error cause you to be short $2. You'd need an expert of some sort to get into the nitty gritty, but my point is that there's *a loooot* of reasons for this. And sometimes there may also be illegal reasons, but I wouldn't ever jump straight to that conclusion, as there's rarely any worthwhile reward for that risk profile
Yup. Companies are lazy, and overpay (the government) ... hence why you get a refund.
@@brendonw456 you are when you're paycheck to paycheck, which I was the first time it happened
Every time I get a tax break I end up paying more in taxes than before.
I love the comments section where everyone is a tax expert. Never disappointed
You don't have to be a tax expert to know the black woman sounds like a democrat trying to get re-elected and blaming all the worlds faults on the evil white man and his terrible tax brackets. I also know to the cent what I will pay in taxes at any given time and I relish a big pay raise because pimping aint easy.
You don't have to be a tax expert to understand that.
It's literally like... the basics. If it seems hard to you it might be a... you know. You thing.
@@aaron4102 have you look a the comments section?? It's wild, even for a... regular guy
This is such a common misconception. Glad you are clearing it up.
Yea, she never went from 75K to 150K, and her friends did not do this either. Also she does not due her own taxes.
Its more of a lie perpetuated by the rich to blame the system and get us all to be OK with them continuing to lower their tax burdens until they stop paying taxes altogether like many of them do now through loopholes the government has done nothing to close.
Same advice my neighbor gave me when I told him I was trying to get 3 jobs… my neighbor is literally homeless now no joke.
@@gibblespascack1418yeah if you do your own taxes and think that’s how tax brackets work, you are over paying your taxes or something
I don’t get how people still believe it. Like have they never filed a tax return?
Living in NYC and making 150 k , it feels like the irs is after you daily . The taxes in general in nyc is abhorrent
The city is like the freaking mob
Wow.
This conversation i had 8 years ago with my brother who holds an economics degree. He told me i shouldnt get a pay raise, because im gonna end up with less money. I took the pay raise anyway.
I never understood this idea that making more means you get less because of taxes. That literally makes no sense, you literally make more.
One time I made more money working 53 hrs a week than I did working 57 hours the next week. Yes, I know how to read a paycheck and I noticed they took more. Me and my co-worker decided not to do it again. I would like to see this expert explain this away. Or at least don't say she is completely wrong when people have such experiences.
@@Clyjade_of_God_and_Putin I can't speak to your experience but it seems like thats a separate issue of being an hourly employee of a greedy company that thinks it can get away with stuff like that
@@Clyjade_of_God_and_Putin Your paycheck withholding assume you will make more for the rest of the year, like getting a raise. This can cause the calculation to "think" you have not paid enough taxes. You will get this money back at the end of the year.
Yeap.
Republicans on talk radio have for decades pushed this false narrative regarding taxes.
Such purposeful GQP misinformation and disinformation campaign brought us the "Tea Party" (which later changed its name unto "The Freedom Caucus") from where the Magahat Cult comes from... all needless chaos and division.
They'll deny it even when explained.
They will not admit they've been duped, and so they choose instead to dig in and (as they so proudly say) "burn it all (America) down - if that's what it takes."
@@theBear89451 Yep. It just sucks though.
This is similar to when they say, "oh well they're a business, so they can just write off those expenses"
when referring to things that cost businesses money.
There is this common misconception that expenses don't matter to businesses.
I tell people all the time... its only wise to use expenses to lower taxes if that expense was needed anyway or at least maintains or appreciates in value. Spending $100 to save $40 in taxes is still losing $60.
To anyone who thinks write-offs are a great benefit, I'm happy to provide one. You give me $100 and I'll give you a receipt indicating it's an educational expense. This will save you an average of $22 on your taxes. Congrats!
@notme222 so basically tax write offs are only usefull to avoid entering a new tax bracket correct?
@@juancena1117 I would say they're basically useful for making something an "expense" instead of an "investment". Typically when someone says they're taking a write-off they mean they're avoiding the sunk-cost fallacy.
Suppose it's 2023 and you're a movie studio that spends $90 million on the cast and crew to shoot a movie. That $90m comes out of the studio's cash, but you don't get to deduct $90m from their income yet because they're still working on it. You have to edit the movie and add special effects, market it, put it in theaters, collect revenue, and then subtract the cost to see if it's profit or loss. Which will take at least into 2024.
But as the studio you look at what you have and say "Oh crap, this Batgirl movie looks terrible. Let's write it off." That means you're not going to spend any more money on it and not expect to make any profit. So instead of waiting and counting the $90m as part of an investment, you get to subtract $90m from your taxable income for 2023.
If a company buys a car to make deliveries, that's an investment (no effect on taxes) but over the next few years they can subtract the mileage from profit on each delivery. Expensing it bit by bit. But then the driver crashes it. Now it's a write-off and they expense the whole value of the car because it's not useful anymore.
@@juancena1117 if you spend a dollar on a write-off, you save about 30 to 40 cents on your taxes.
So write-offs are still an actual expense for a business .....it's just reduced by about 30 to 40%.
As far as entering another tax bracket, the higher tax bracket only applies to the extra bit of income that got you into that tax bracket. Let's say the higher tax rate kicks in at $60,000 or more. You still get the low tax rate for $60,000 then you pay the higher tax rate on everything above 60,000.
In other words it's always better to make more money even if it gets you into a higher tax bracket. You just start paying more and more money on the extra amounts you make. You don't actually lose money though.
It depends on what the raise comes from. If the person in question got a raise based on commission while their old pay system was just salary, yes they will see a reduction in pay. Commission and bonuses are taxed at a much higher rate.
@@nickthompson2023 Then it's not because of a pay increase. If you get a chunk of regular pay replaced with, e.g., bonuses, then you'll make less, but it's because of a different source of income, not because of a pay increase.
Incorrect. Withholding can be much higher for large, one-time bonuses and commissions because its computed based on the assumption you’ll make the same bonus/commission every pay period. However, any extra withholding is paid back after you file your taxes because bonuses and commissions are taxed at exactly the same rate as other kinds of pay.
Yup, they probably had some odd exceptions or selections with their raise that she's not explaining. Or she's just lying.
Simple Title 15 USC 17 states "The labor of a human being is NOT a commodity or article of commerce" and section 83 of IRS Code states how to tax the fair exchange of labor.
People have won against the IRS, I can't cite case laws but I'm sure it's public reference, BUT it comes with a lot of lost time proving your case to them.
David Myrland is one of these people who learned and beat them numerous times. Sure he has a YT channel but haven't stopped to watch in months 😢 really it's all contractual obligation, cancel the contracts and a lot of people are living a better life. It's much, much deeper than we the average folks can comprehend
Still wrong. Your overall pay will not go down. You're not being taxed on your commission at 120% which is the only way it's possible to go down. Any extra income is better than no extra income. If you're upset about being taxed more, then stop voting for democrats
As an employee who agrees with this logic. My main concern is that with hour 1 of effort, 100% of my effort is returned to me, but on hour 45, only 30% or so is. So for the same amount of work, I'm being paid less later in the week than earlier. No I don't want to do overtime, because I won't see the money. Progressive taxation is cancer.
The ice cold “so she’s dead wrong” had me dying LOL
Like anything in life, if you speak with enough confidence it does not matter if you are right or wrong.
We want loopholes on your videos not someone telling us how to be good taxpayers. We want to know YOUR tips and tricks you give to your high paying clients. How about it?
She technically wasn't wrong. She said she knows people who made more and saw less on their paycheck. This is possible with certain tax avoidance strategies.
@@sherlonb1704she was wrong. You’re playing semantics
@@ducks-on-quack She's playing semantics. She said it, knowing how it would sound, without actually seeing anything untrue.
@@sherlonb1704 You could say she is technically not wrong, but then she isn’t telling the full truth. I got a raise, and I saw about $11 less on my paycheck. But that’s b/c at the same time, I pushed my retirement up by $70. So I actually made more money, I just allocated it to my savings before it hit my paycheck.
So I’m not wrong. But I’d basically be lying to people. Just like that first video. Steering people in the wrong direction. Tricking them think they don’t need to make more money.
So the harder you work and more you make the more they take. Got it
Yes, but you’ll never make less when you make more money. You’ll take home a smaller portion percentage wise of a greater sum. I’d rather have 75% of 100k vs 80% of 80k every day of the week.
But they will always take the same amount of what you made previously. So if you were taxed at 10% at $100,000 and the next tax bracket was for 20% starting at $100,001 and you started making $120,000, only $20,000 would be taxed at 20%.
These are obviously unrealistic numbers, but the progressive nature of the brackets is what I'm trying to convey.
@@thorshammer138of how about you take home what you made. They have tricked us into believing we have to accept that.
You think people who make more money work harder? Lmao so the finance guy working in a cushy office in air condition works harder than a construction worker?
The sweat detox is a bonus perc that the office smub has to do in his freetime.
The other common misconception, at least here in Australia, is when people try to sell you on donating to charity and say "it's tax deductible, you'll get it back at the end of the year" ... no... no you don't! You claim it as an expense AGAINST your taxable income, which reduces your tax bill by a percentage of the expense. On average, Australians are taxed about 30 cents to the dollar. If I spend $100 per year in donations, I can expect to reduce my tax bill by approximately $30.
TikTokers and UA-camr’s with false info have never been in a classroom to share and give opinions for likes. Thank you Jazmine for debunking all this nonsense 👏🏽👏🏽👏🏽
My economics teacher in high school believed this too.
Look her up her name is Lynn Richardson (I think). I understood her to say that the 100k = 75k doesn't mean the 200k will = 150. I could be wrong. So someone point me in the direction with a detailed explanation with an example. Thanks
@@celebrationcruisetrip5735 that’s exactly correct. There was nothing wrong about what Lynn Richardson said.
They're both right. One technically, the other practically. But the one with the technical knowledge should know better. Marginal tax rate IS a thing.
People who spent much time in classrooms have the US in $30+ trillion in debt.
Of what use was the classroom of you go broke with what you've learned?
To be fair, it's about more than just the brackets. For instance you could lose tax credits with a higher income and when you leave the 12% bracket behind you also lose the 0% long term capital gains/qualified dividend rate.
Correct, however; as you make more you start to becoming ineligible for many tax privileges such as IRA contributions, etc.
I don’t think the original presenters audience is investing in IRAs
@@Shane46587 Wanting to delay a raise SPECIFICALLY to contribute to a *Roth* IRA is somewhat valid.
However, I'd say it still isn't worth it. Because there is NO annual income limit that will prevent you from contributing to a *traditional* IRA. You lose the benefit of having a post-tax contribution that is later a tax-free withdrawal (as a traditional IRA will be a pre-tax contribution that is taxed upon withdrawal)...but you can still build with compound interest entirely tax-free
The paycheck make more get less net pay phenomenon happens because the withholding is based on an extrapolation by the employer on what bracket you're in if that check was consistent throughout the year.
You're not actually "losing" money, it's just a calculations issue.
Had a hourly job where this happened to me back in 1987. I don't remember exact numbers, was making around $3.50/hr - worked something like 35 hours one week, took home $110, then 39 hours the following week, took home $107. It was a WTF moment.
That's why you do your taxes by April 15 the following year - to reconcile those variations in withholding and settle with the IRS/state. Those extra dollars withheld on that oddball extra hours paycheck are given back to you when you file.
For a lot of tradesmen this is one of the first lessons. Overtime is great, but don't overdo it. Depending on your hourly rate, it's best to stay around 12 to 20 hours of OT for best work/life balance. But do what's best for you.
Get advice on how to maximise the benefit.
Even if you disregard tax brackets, Paying 30% in taxes on 200k is still more money then paying 20% in taxes on 100k. Some state and local taxes may work a little different, but more money still equals more money. You just get progressively less of an increase as you increase your salary.
$100,000 - 20% = $80,000
$200,000 - 30% = $140,000
Do you pay more taxes? Yes? Cause you made more.
Is $140,000 more than $80,000? Yes because you made more. Make more, pay more, have more.
Its not like taxes just become 120% all of a sudden and you start losing money
People want to" tax the rich" but don't want to play more tax when they make more income..
@@TimTheTall hmm, someone making 100k vs someone making 100m, clearly comparable situations
@@RealHankShill this is incorrect and depends on the state you reside in. Where I reside I earn 100,000k my take home pay was $68k Federal taxes may be up 22% then there is everything else state, social security., Medicaid, unemployment etc
What's funny about this is that i had a high school economics teacher, who was outwardly Republican, teach us that it isn't progressive and to push for demanding to use the "fair tax" by voting Republican.
It wasn't until i started doing my own taxes to discover that the math wasn't mathing.
Then i started my MBA and it became clear. This is why getting education is necessary because anyone is willing to lie to help themselves.
Yah, he did it because he's a selfish greedy cvnt that doesn't want to support his follow countrymen but just go back to feudal times with his guns and prepper storage.
Fair tax is a good idea if everyone pays the lowest tax bracket. It would mean the government would have more scrutiny over how it spends tax money because the public would pay more attention to how the money is really spent when they inevitably want to raise it.
No you didnt
I love it when 1040 slaves continue to play partisan musical chairs with their own self-imposed restrictions and confinement.
@0scJohnson0 which would be great for production and consumers alike
It's very easy to understand and calculate. You just need the IRS tax tables for your deductibles and income and a spreadsheet. If you know how to work a simple spreadsheet, you can, in 30 minutes, be looking right at what a raise does for your actual paycheck.
The fact that these things arent taught in school is the real problem. Practical education about how the world works is far more important, loans, credit cards, taxes, investing. There is absolutely no reason this cant be taught. I learned this on my own and from my parents but not everyone has parents to educate them on this and this is an easy one the education system could include without taking the place of the parent, its just basic education.
These things ARE taught in school. No one pays attention but a few. And even those that pay attention likely don’t remember the 2 minute conversation about it.
@@TheBajaminYou took a tax course, learned about loans and investing in high school? I surely didn’t learn anything of this in high school and many other folks didn’t either.
The education system is set up purposefully so they can make money off of our ignorance. They know this, but they don’t want us to.
Its not an excuse when you're adult to say "No one went out of their way to teach me this." sometimes you have to look at something, realize its important enough for you to seek out education on actively. The IRS has a help page, tons of documentation and a support number you can call. Saying you weren't taught in school is an excuse. When things happen to me in life as an adult and I need to make decisions, I seek out trusted sources of information so I can educate myself. I'm not going to sit on my butt and go "Well high school should had prepared me for every adult decision I need to make. WAHHHH. Boohoo me, no one told me exactly how to make adult decisions and how to seek out information." NON SENSE Tomfoolery. If you don't know how something works, FIND OUT, don't sit there and blame your high school education on not preparing you to be an adult.
@@adammiller9029 Actually yes I can make a formal complaint about this because I was forced to spend 6 hours every day sitting in a classroom. This time was stolen from me, thats 6 hours a day for 12 years. This is time i was not able to spend learning things that interested me or growing myself. The authorities said it was mandatory. I'm saying the authorities have an obligation to make this a valuable trade. To have the expectation that they use that time well is not an excuse for anything. I am no longer a child but now one of the authorities and I'm saying they are wasting students time in many cases. I'm not alone in this opinion. To expect greater value from the education system is in no way an excuse for adults.
If people are seeing their pay shrink after getting a raise, there's probably something very hinky going on in the accounting department. Either someone doing the payroll has no idea how to actually do their job, or there is someone stealing money from the employees. Either way, report it to accounting and HR, and maybe even to the CRA or IRS, or whoever your country's tax organization is, cause they'll be interested.
Actually nope. I’m an employer and this is true. The more $ you make the more taxes you have to take out. Also, most people are not aware but the employer also has to match the amount taken out and pay that to the federal government.
@@Frybaby2017actual tax professional here and you are partially wrong by disagreeing. You will pay more in tax the higher you go, but you will NEVER take home LESS after taxes than you did before the raise. The first lady's example is 1000% incorrect and made up. There is no tax situation in which it could be true.
@@Frybaby2017False. If I'm making 100k and I'm taxed 30k, I'm not going to be taxed 135k when I'm making 200k. People are just flat out stupid
How nice to know people who have a raise from 100k to 200k.
UK accountant & tax person
Usually it's a job change or big title change
I currently make $95K and I just accepted a job offering $160K. It's possible
@@kakishisfriend1126 Even so, it is a huge jump.
@@kakishisfriend1126or making a major location move. Like going from a southern state to a northern state you’re going to probably get a major bump in pay for the same job but it’s not going to go as far.
@@kakishisfriend1126he’s being sarcastic, it’s impossible for you to make less after getting a 100,000 dollar raise if the circumstances are exactly the same. You cannot make less
If you listen to what she said, she’s not wrong. She said the more money you make the more tax bracket you fall into. She didn’t say anything about all of her monies being taxed in a new higher rate.
This.
You're isolating a fraction of what she says. She is dead wrong. You NEVER get paid more and then receive less!
@@Drummerjl1 my paystubs say that's a lie lol.
@@Drummerjl1 ahem: I make more money, and get more money, but when I get taxed, even at a lower rate, the amount of money I have to give away is increased compared to if I received the money and paid according to the lower tax bracket. You “make more,” but more is still taken. It still ain’t right no matter how you cut it.
@jaxfernandez3684 so you're saying you're mad at how percentages work?
My tax return when I earned $38k/year was around $7k. When I earned $53k/year, my tax return was around $4k. Essentially, the IRS took more from me for taxes when I earned more money regardless of how taking more of my hard earned money is broken down.
You need to adjust your W2 deductions. You want to have the smallest refund possible. You're paying way too much in taxes on your paycheck
No, your standard deduction was less effective (essentially the first 13k or so is 100% tax free). They took the same amount every paycheck, you owed more money by the end of the year because more of that money was actually taxable. Regardless, when you make 15k more per year your total earnings didn't suddenly do down like the first lady claimed.
Because that 13k was so significany early on, you were basically not paying tax on 50% of your income. The deductions you saw each paycheck resulted in more returned, because deductions are not factored into what they take out each check.
The worst part in this is that the government and the people that we elect think that can solve all problems with our taxes and they are too wasteful.
I used to work construction and I cannot count the amount of times that we worked OT and I heard guys complaining about how they weren't making any more money than their regular hourly rate because of higher taxes. Those are probably the same people that use their magical mystical tax refund as a vacation fund.
Ahh so nice to see a reply that gets it. So many in here have no idea what they are talking about but want to weigh in.
A lot of workers don’t understand why significant overtime and bonuses are taxed so heavily. You should do a video explaining that.
My favorite one is, "Why not give the poor a tax break?""
I'm from Alberta, Canada, and if you made minimum wage or close to it, you only pay like $1000 in taxes. Keep in mind that public healthcare alone is $9041 per capita.
It's amazing that people can receive back at least 12x what they put in and still want a tax break.
In my experience, greed makes you poor.
In Canada, you're allowed to make 15000 before you start getting taxed .
In a regular 80 hour pay period, the last 2.5 days you work goes to the government; and only a fool works for free
So I only work 60 hours every two weeks.
There is a reason the pay period is set up for 80 hours per period. It's to extract more tax revenue from the worker .
I just refuse to work for nothing for three days just to give it to the government .
@@edwardcook5282
I do the same, but I'm not an employee. I work for a $15k salary doing maintenance for my wife's business. As a result I don't pay any taxes. Do to various credits, I'm getting paid by the government now.
While I get what you are saying and it does work that way at the end of the year, I have also seen people get a raise and they brought home less money on their paychecks. It wasn't for large raises, but smaller ones.
I assume they got it back when they filed their taxes, but it didn't change that their weekly pay did go down with everything else being the same.
Sounds like a company doing something shady.
I can't speak about the states, in Canada your employer has to make deductions before handing over your pay. It's very difficult to be in a position where you owe money unless your employer over contributed to CPP, or EI (pension and employment insurance). From my understanding only newly declared capital gains or secondary income from self employment that is reported end of year.
That's literally not possible unless they fucked up
I love how she “knows” ppl that make less when earning more. Such a liar
I mean, let's start with the idea that she knows anyone who got a raise from 100K to 200k. 🤣🤣🤣
That said she's correct in saying you won't see 75/12. While you are also correct. It is near universal that if you make enough but not too much you'll get screwed on tax. If you don't make enough to take advantage of the endless loopholes but you make enough to fit into the higher tax brackets of wherever you live you'll end up paying more, like working 6 days but only getting paid for 5.
How do people not understand this. That would be ridiculous if you made one extra dollar and had to pay an additional 10% on your total income. At this point, people should say, “that cannot be” and then discover that it in fact isn’t after some research
Not what she said. She said that they saw less on their check, which is probably with certain tax strategies.
@@sherlonb1704 If you refer to paying taxes as a "tax strategy" then you're attempting some shady shit.
@@sherlonb1704not really possible with the number given in her example. Even if you decide to max your 401k after the raise and we're not contributing before the raise, you still end up with around 45k extra after taxes are done.
When in my twenties I got a two dollar promotion. I worked more roles, but I got the same after taxes. I didn't change health care anything. My friends worked different roles there and voiced this issue to me too.
The highest federal tax rate is 37%. The vast majority of Americans are in the 12% and 22% brackets. Simple math says you keep more than the government gets. . .no matter what bracket you're in.
Yeah, even if you work in CA (highest state tax in the US) and make $1M you still wouldn't pay 50% in taxes - though you'd be getting close
I would hope so as we are the ones waking up daily, spending money to get to work, giving up our life in which we only have one of, and just living out the stress of a job. I sure would hope we keep more than the government.
That’s still too much.😂 I getting there. It’s infuriating seeing how much the government takes. I’m now looking into hiring a CPA.
There's payroll taxes which is 15% regardless of how much you make up to, I think, 180K. Payroll taxes sure seems like a Federal income tax to me because it's taken out by the Federal government at the same time other Federal taxes are taken out.
Of course, we then add state and local income taxes, and then we're easily exceeding 50% of your gross salary.
@langhamp8912 Social Security withholding stops at $168,600 this year. But you can bet as 2034 gets closer, they will get rid of the cap like they did with Medicare withholding about 20 years ago. You know what happens to Social Security in 2034 right?
She's absolutely correct . I thought when I made a certain amount, I would be okay . Nope !!!!! The Government takes and takes, and I have no clue why that's okay . Taxes are out of control .
Oh! My nephew was learning about this, in his 7th grade Math Class in Melbourne. I was confused, listening to my brother help him out online, but this just made sense now. THANK YOU.
Someone finally clearing things up. Thank you from a fellow tax practitioner/owner
It’s mind boggling how grown ass adults can be so willfully ignorant. She heard that crap on Facebook and just regurgitated it, just like most people do with any stupid piece of bad info.
A CPA I worked for said "More money is always a good thing."
I legit was today years old when i learned this. Thanks fam
You are clear, and helpful
IT's called a Tiered tax bracket system for a reason.
As a Union Electrician, I always LOVED IT when I heard my Union Siblings turn down Overtime because "I wuz gwan looze munneh from Bracket Creep."
MO MONEY FOR ME!!!
Lmao so many comments still don't understand, a MARGINAL tax rate DOENST apply to your full pay, it only applies to any $ that reaches the last bracket. Higher income =\= lower pay due to a MARGINAL tax omfg
I think her friend hit the 101% marginal tax bracket. 😂
That woman is dead wrong. She's completely lying.
Lmao how do grown ass adults not understand the most basic tax concepts.
Corporations make ~100,000% ROI on lobbying. They pump billions into propaganda every year. That's why otherwise competent adults believe insane things about taxes, corporations, the stock market, the economy, etc
If you survey people on the streets, the vast majority of middle class individuals think the government is giving them free money in April like a prize. It is scary how few people realize their refund checks is just the money they earned 12 months ago that the government held onto interest free for a 12-16 months before giving it back to you.
@@JAlexanderCurtis It's really nice when you complete lie spouting morons are as stupid as you. It makes it very easy to show others that you have an IQ of ~12.
Your income puts you into a tax bracket which is simply a sliding percentage scale. All of your income I taxed in that bracket. Whether you have 1 job or 3. When you add your income up and it puts you in a higher bracket, you're gonna pay that tax on all you made that year.