Originally Posted by
Duckdude
For me, this “raise” has resulted in a reduction of over $2500 in net income because of the tax brackets I have now been pushed into.
Getting a raise and being pushed into a higher tax bracket doesn’t reduce your net pay. The higher tax rate only applies to the AGI you make above that amount.[/QUOTE]
$2000/70=$28.57 previous non-taxed income
$211-$174=$37 increase overall
37-28.57=8.43 actual increase
8.43*70= $590 monthly increase in net pay.
this was hardly a raise. That 590 pushed me into new brackets so I’m netting less than pre raise.
I literally did the math and from federal taxes alone, this will cause a net reduction of $2500 for my take home pay for the year. With state taxes it will be even higher.