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Ever been told not to take a raise or work Overtime because you'll be screwed over by Uncle Sam? Well, I'm here to tell you that those lines are false. A raise is STILL a raise even if you jump to a new bracket! Allow me to explain why.
Sources:
Tax Brackets 2022: https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets
W-4: https://www.irs.gov/pub/irs-pdf/fw4.pdf
Publication 15: https://www.irs.gov/pub/irs-pdf/p15.pdf
Withholding Worksheets from Pub 15: https://www.irs.gov/publications/p15t#en_US_2023_publink100019280
Ever been told not to take a raise or work Overtime because you'll be screwed over by Uncle Sam? Well, I'm here to tell you that those lines are false. A raise is STILL a raise even if you jump to a new bracket! Allow me to explain why.
Sources:
Tax Brackets 2022: https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets
W-4: https://www.irs.gov/pub/irs-pdf/fw4.pdf
Publication 15: https://www.irs.gov/pub/irs-pdf/p15.pdf
Withholding Worksheets from Pub 15: https://www.irs.gov/publications/p15t#en_US_2023_publink100019280