Why do ppl say it’s not worth it to work more cause tax?

amother

Hotpink

Thu, Aug 22 2019, 9:46 pm

Because it means I work crazy hours, am away from my family for many hours and have just about the same disposable income I did when I was low income and getting gov. benefits. I can see why women don't want to work crazy hours when take home pay is so little. The reason I'm doing it bec. I want to be financially independent, and bec. I am hoping to advance in my career so that there will be more take home pay. I also hope I'll be better off in retirment.
Seriously thinking about moving out of NY, since I hear that is the worst. Didn't do enough research on this yet, though, to know if its true.

amother

Wheat

Thu, Aug 22 2019, 9:53 pm

Mommyg8 wrote:

I couldn't believe this, so I did the math, and you are right! In New York city your total tax would be around 45% (on the marginal earnings, which means only on the money you yourself earn). If you also have to pay a babysitter you might be left with earning pennies on the dollar. I don't understand how it pays for a woman to work in these circumstances. And I understand even less how they get away with punishing these middle class families in New York city...

Perhaps that both parents can be earning 200K Why is wife earning only 45K?

or just look at it differently - as a family we earn 245K before tax - we'll find the money for childcare.

what would happen if the family didn't file a joint return?

amother

Ginger

Thu, Aug 22 2019, 11:17 pm

The new rates, which relate to the tax return you'll file in 2019, are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.
Basically most you'll get taxed is 37 cents on the dollar in the highest tax bracket. That hardly means your losing money! This is a huge misconception. In Canada the highest tax bracket is 80 percent now that's a reason to not try to earn.

amother

Ginger

Thu, Aug 22 2019, 11:18 pm

amother [ Hotpink ] wrote:

New York tax is higher but you're also earning more than you will elsewhere by a long shot.

ectomorph

Thu, Aug 22 2019, 11:19 pm

Because if both parents are earning 200k, neither has time to take care of the kids. Most families delegate childcare to one parent who picks thrm up from school when sick, handles teachers, etc.

The lower paying decent jobs with flexibility are 45-60k. Therapies etc.

Mommyg8

Thu, Aug 22 2019, 11:54 pm

amother [ Ginger ] wrote:

You forgot to add social security/Medicare tax, and state and local tax. "A rose by any other name ..."

amother

Lilac

Fri, Aug 23 2019, 1:05 am

Mommyg8 wrote:

You forgot to add social security/Medicare tax, and state and local tax. "A rose by any other name ..."

Have to agree with this again. If it was "only" federal taxes, it wouldn't even be that bad. It's all the withholdings together that averages out as an upwards of 40% tax rate. So upsetting.

amother

Honeydew

Fri, Aug 23 2019, 1:35 am

ectomorph wrote:

Very common. Suppose your husband earns 200k. If you ean 45k, you're taxed at 40%. So you have 25k left. That barely covers full time babysitting plus all the costs of working.

Interesting. So in America, how much I am taxed depends on how much my husband earns?

In Israel, we each are taxed totally separately. I would be taxed the same whether my husband was unemployed or earned millions.

amother

Puce

Fri, Aug 23 2019, 5:50 am

I worked really hard one year. Spent a small fortune On babysitting to accommodate work schedule. Put me just over the edge of the next tax bracket where I was no longer eligible for about $15k I'm tax credits. Essentially I worked and worked and barely covered the babysitter.

amother

Puce

Fri, Aug 23 2019, 5:51 am

amother [ Honeydew ] wrote:

I'm America you can file joint or separate but ususally more tax benefits for filing joint.

Pikachu

Fri, Aug 23 2019, 6:06 am

amother [ Seashell ] wrote:

Put very simply, thunderstorm is wrong. As a CPA, this is the number one myth I have seen propagated about and it drives me crazy. If your income goes up and you're bumped into the next tax rate, you only pay the higher tax rate on the marginal amount above the lower tax rate. It is therefore never true that an entire tax increase goes all to taxes.

Yes, but many people end up with a net negative once factoring in the lost EIC and all combined taxes

amother

Honeydew

Fri, Aug 23 2019, 7:14 am

amother [ Puce ] wrote:

Also interesting. The tax credits in Israel are not cancelled when you earn more. (You get a tax break for things like being a single parent or for every kid).

The American system seems to almost discourage some people from working, especially mothers who traditionally earn less.

amother

Ginger

Fri, Aug 23 2019, 9:50 am

ectomorph wrote:

If youre married filing jointly you get taxed at 24 percent on earnings from 165k-315k. Plus state tax. You don't ever lose deductions such as child tax credit. Earnings over 315k I admit take a big hit by jumping in to the next tax bracket of 32 percent which is a high increase. Still to say that over 200k your spending 40 percent on federal tax as a married couple is simply not true.

amother

Ginger

Fri, Aug 23 2019, 9:53 am

amother [ Ginger ] wrote:

Also don't forget kids don't stay babysitting age forever and leaving the workforce will lower your salary.

amother

Babypink

Fri, Aug 23 2019, 10:28 am

amother [ Hotpink ] wrote:

We moved out of NY and boy do we see a difference. The taxes are much lower! Dh's pay didn't go down because he works remotely and still has the same job. Essentially he got a big raise by moving away from NY!

#BestBubby

Fri, Aug 23 2019, 10:31 am

amother [ Babypink ] wrote:

Great! Which state did you move to?

amother

Babypink

Fri, Aug 23 2019, 10:46 am

#BestBubby wrote:

Great! Which state did you move to?

Not too far away. NJ. Which is still considered a high tax state. But nothing like NY.

amother

Pearl

Fri, Aug 23 2019, 10:47 am

amother [ Babypink ] wrote:

That's a great deal. I moved out of NY and save a lot on taxes but salaries here in my field are lousy.