I usually opt to work more during the holiday season because we get higher wages (holiday pay). I signed up for a lot of extra days and my co-workers keep telling me that because I’ll make more money, I’ll get taxed more. So I’ll be receiving less pay than I’d usually make without the overtime. Is that right? I feel stupid right now.
In: Mathematics
No, the way taxes work in the US (and pretty much everywhere because the alternative is stupid and bad for everyone) is that when you earn more, you take home more after taxes. You may pay a higher rate on the overtime pay, depending on how much you make, but you will never take home less.
Aside from just not understanding how taxes work, the only reason to think this might be if your job does a bad job of managing your tax withholding and withhold too much. (They may, for example, withhold as if you would earn that holiday extra all year.) But you can tell them not to, and either way you’ll just have s bigger tax refund if they withhold too much.
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