Return_of_Chippy@lemmy.world to Ask Lemmy@lemmy.world · 6 months agoWhat's the biggest misconception you think many people have?message-squaremessage-square86fedilinkarrow-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 · 6 months agomessage-square86fedilinkfile-text
minus-squareDialectic Cake@lemmy.worldlinkfedilinkarrow-up46arrow-down1·6 months 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-up14·6 months 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.