IS WORKING OVERTIME WORTH IT? Taxes and Overtime

A complete guide on how taxes and overtime works. In order to understand "Is working overtime worth it?" We must first understand how our income tax system works. Once we know how taxes work and how it relates to overtime then you will find out there are A LOT of misconceptions and myths about whether it is worth it to work overtime. For example, working overtime does not change the taxes on your regular income. Period. There is no "buffer zone" or "tipping zone" where if you work a certain amount of hours you change your entire tax bracket thus making working overtime not worth it and mathematically illogical. You will pay more taxes (because you're taking home more money) and it may put you in a higher tax bracket but tax rates are progressive. Meaning, whatever tax bracket you end in (Ex: 12%, 22%, 37%) that doesn't mean you paid that percentage of taxes on all the income you made. It works progressively up the ladder throughout the year. 🎒FINANCIAL BOOKS I HIGHLY RECOMMEND: 1. Rich Dad Poor Dad: What the Rich teach their kids about money that the poor and middle class do not. https://amzn.to/2SLWLhw 2. Everyday Millionaires: How Ordinary People Built Extraordinary Wealth. https://amzn.to/3dno5Mr 3. The 4-Hour Workweek: Escape 9-5, Live Anywhere, And Join the New Rich. https://amzn.to/34IkSTS This video is not sponsored. Some product links are affiliate links which means if you buy something I may receive a small commission at no extra cost to you. 🙋‍♂️1 on 1 Sessions Available @ https://timwolffe.com/services 00:00 Intro 00:57 Overtime vs No OT 04:50 How Taxes Work 07:13 The Buffer Zone Myth 08:23 Where The Money Goes #timwolffe #personalfinance