Originally Posted by
ZeroTT
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?
Check out the IRS form 15-T, it discusses withholding methods. Should be relatively easy to go through the same way an employer would when calculating withholding, to see the effect of a pay shift.