OVERTIME KILLING ME?

4 replies
40 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!

TurboTax Self Employed Online

ChristinaSAnswer

Alumni - Intuit

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

Alumni - Intuit

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....