If you have already worked more hours and found that these hours earn you a higher tax rate and generate less income, a copy of the 2010 tax brackets can save you from doing the same again. fault. The main reason for this effect is marginal tax brackets, and they can make you think twice before spending all those long hours of overtime working for less pay and higher taxation.
It is confusing to think that the harder you work, the less you earn and the more you are taxed, but if you understand the reason, this can be avoided. Marginal tax is an additional tax which is charged for all additional income earned. It hardly seems useful to work when income is taxed in this progressive way!
With the economy being bad and people unable to make ends meet, one of the first things financial advisers recommend is taking a second job. It can be the difference between losing your home in foreclosure or being able to pay your medical bills, but is a second job worth it?
For example, you work in a department store during the day and your income is taxed at 20%. You are in financial trouble, so you take three hours of overtime work at a local pharmacy after hours as a clerk. With the earnings from these two jobs, it is expected that your net salary will be much higher, only to find out that you are placed in a higher tax bracket and that you are also paying marginal tax rates. .
The only way to know how this type of tax will affect your income if this is the action plan you are considering for 2010 is to get hold of a copy of the 2010 tax brackets. way, before you start any additional work, you can find out how it would affect income / tax ratios and whether it will really be a tangible benefit.