Originally Posted by
dera
I had a CA complain about this once after we got our pay raises. "Im actually making less now because I pay more in taxes".
!
I wonder if this is sort of possible.
I understand how marginal tax rates work on an annualized basis. You don’t ever lose money by making more
but what about withholding? Could a midyear shift in income cause required withholding to increase such that for a few months you lost ground? You still don’t lose money over the year but maybe a transient dip in take home pay?