Consequences of increasing income

amother

Topaz

Mon, Jan 24 2022, 1:49 pm

being in a higher tax bracket means you pay a higher percentage on the additional income. It doesn't mean that when you earned 30K you paid 12% of that and when you earn 50K you pay 22% of that. You pay the same rate for the first 30K and then 22% of the extra 20K. I'm making up the numbers, but that's the structure. A new bracket means you pay a higher rate on the additional income above the lower bracket. Here are the actual numbers for 2021-22

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $9,950

10% of taxable income

12%

$9,951 to $40,525

$995 plus 12% of the amount over $9,950

22%

$40,526 to $86,375

$4,664 plus 22% of the amount over $40,525

24%

$86,376 to $164,925

$14,751 plus 24% of the amount over $86,375

32%

$164,926 to $209,425

$33,603 plus 32% of the amount over $164,925

35%

$209,426 to $523,600

$47,843 plus 35% of the amount over $209,425

37%

$523,601 or more

$157,804.25 plus 37% of the amount over $523,600

amother

Hyssop

Tue, Jan 25 2022, 10:32 am

Before you give up any government benefits such as Medicaid, ask around and make sure employees are paid the amount promised and on time.

When I got divorced, I became eligible for food stamps. I applied for a job teaching in a local Bais Yaakov high school. The man who owns the school offered me a great salary, but that salary would cause me to lose food stamps.

So I told him that I very much want to accept the position, but that I was relying on food stamps to feed my children. I explained that if I accepted the position, I would lose those benefits. I told him that I very much want the job, but I need him to ensure that I will always be paid on time, because food stamps are always on time, and children need to eat.

He said that I would absolutely be paid on time, except each year in January when certain government funds need to come, he sometimes has to pay late, from January to March. I told him that would be fine because I could borrow money from my family each January.

So, I accepted the job. I think you can guess where this story is going... He paid me on time for the first few months, but never paid me on time again. He often didn't pay me for months on end. It was a nightmare, and eventually I just quit.

So, before giving up Medicaid, make sure you ask around and make sure your new employer is good for the money and pays on time.

P.S. I think it's a disgrace that an institution that purports to give a Torah education over to our children violates that very Torah's injunction to pay workers on time. Especially in a case where the employee made it clear in advance that she does not consent to late payments, and the employer agrees to make sure she is paid on time.

amother

Wheat

Tue, Jan 25 2022, 11:15 am

amother [ Milk ] wrote:

Well, if you wait till you "notice" then yea, I guess.

But like I wrote, my income more than doubled, and my budget didn't change. Previously, I wasn't making it, when my salary increased, the remainder went into savings.

I still had my food budget, restaurant budget, etc.

Same. My resteraunt/take out budget was zero and continues to be so even when our income rose significantly.