Return_of_Chippy@lemmy.world to Ask Lemmy@lemmy.world · 4 days agoWhat's the biggest misconception you think many people have?message-squaremessage-square88fedilinkarrow-up163arrow-down10file-text
arrow-up163arrow-down1message-squareWhat's the biggest misconception you think many people have?Return_of_Chippy@lemmy.world to Ask Lemmy@lemmy.world · 4 days agomessage-square88fedilinkfile-text
minus-squareDialectic Cake@lemmy.worldlinkfedilinkarrow-up45arrow-down1·4 days agoTax Brackets. “I got a pay raise and will now be taxed more and make less money than before the raise” If <=30k was taxed at 25% and 30+k taxed at 30% and you go from 30k to 31k a year, only the 1k is taxed at the higher rate.
minus-squareCookieOfFortune@lemmy.worldlinkfedilinkarrow-up14·4 days agoBenefit cliffs do exist however.
Tax Brackets. “I got a pay raise and will now be taxed more and make less money than before the raise”
If <=30k was taxed at 25% and 30+k taxed at 30% and you go from 30k to 31k a year, only the 1k is taxed at the higher rate.
Benefit cliffs do exist however.