OVERTIME KILLING ME?

Forum|Forum|7 years ago
June 4, 2019
1 reply
24 views

I expect to have an income of 53350 Gross for next years return (2017). I have the option of working overtime to increase my income to 60,550. HOWEVER I see when I pass the 50,000 of taxable income, I suddenly lose my Earned Income tax credit for my kids AND I end up having to pay! SO....question is...is it worth it for me to do the overtime?- Or am I working extra for nothing? I file Head Of Household and will have a 7 year old dependent I will claim next year. My daughter will be 19 and NOT a full time student, so I don't believe I will be able to claim her...or will I? Please advise before I bust my hump for nothing! 🙂 Thanks!

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Best answer by ChristinaS

The Earned Income Credit isn't all or nothing. The credit is a horseshoe shaped scale, and the credit would be small at $53,350 anyway.

You will ultimately have more income (aka more money in your pocket), taxes and tax credits included, but making the extra $7000. If you want to turn down extra money, don't do it because of taxes. That would be silly.

ChristinaSAnswer

Level 10

The Earned Income Credit isn't all or nothing. The credit is a horseshoe shaped scale, and the credit would be small at $53,350 anyway.

njjak246Author

Level 2

Thank you for the clarification, I was confused by the jump in taxes owed and the tax percentage increase....I didn't know if I would end up losing more than I was making initially... Any idea how much the ball park difference in pocket income would be roughly....? I wouldn't want to do all the extra time for only a couple hundred in my pocket after higher level deductions....