I was thinking about a 2nd job to help pay some bills so I can live a bit more freely, however, I was thinking…
If my 1st job pays me X amount over the year, theres a certain amount of taxes taken out at that tax level…
2nd job pays less over the year, so taxes are lower and so less tax is taken out of the check…
However, at the end of the year I would be reporting a TOTAL amount higher and thus i would probably fall into higher tax brackets so I would have to pay more into taxes…
question, if this is making any sense… Is it worth to get a 2nd job, or am i just gonna lost the difference in taxes at the end of the year???
You will almost certainly end up with more money in your pocket than you would if you didn’t have the second job. You’ll might be taxed at a higher rate (though since the tax brackets are pretty flat, even that may not happen), but unless it some sort of really strange circumstances, you’ll end up with more money in the long run.
It is worth it to get a 2nd job, and you will not just lose the difference in taxes.
The reason you will not lose out is that each new tax rate applies only to an amount of income over a certain level, so if the income from the second job is taxed at a higher rate than the income from the second job, then only that new income is taxed at the higher rate (and not all of your income).
For example, here are the tax rates if you are married and you file jointly:
If taxable income is:…The tax is:
Not over 36,900…15% of taxable income
36,900-89,150…$5,535 plus 28% of the
…excess over $36,900
$89,150-$140,000…$20,165 plus 31% of the
…excess over $89,150
And so forth
Note that $5,535 is 15% of $36,900 and $20,165 is 28% of $89,150 (i.e., the table does the math for you).