LogFAQs > #895335087

FrenchCrunch posted...

will most of my raise go to taxes meaning i wont really be making much more?

Like I mentioned in my previous post, you will be seeing a huge increase, the other poster was lying to you.

Marginal tax brackets means that the higher taxes rates only affect a portion of your salary, to break it down into simpler terms:

Tax brackets would be something like money less than 10K isn't taxed, 10-20K is taxed 10%, 20-30K is 30%.

If your salary is 15K, the first 10K is untaxed, the remaining 5K is taxed at 10% so you would pay $500 total.

If you got a raise to 25K, the first 10K is still untaxed, the second 10K is taxed 10% ($1,000), and the last 5K is taxed at 30% ($1,500). So you would pay $2,500 total in taxes. So you pay more in taxes, but you still make more. Tax brackets will never make you earn less.

That above information does not include special circumstances like government assistance though. There's also a lot of fuckery with being married vs filing as a single person, etc.