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chemman
Joined: 07 Dec 2004
Posts: 5830
Location: Flying over the Earth poisoning you with chemtrails
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 Posted: Thu Mar 22, 2012 11:05 pm Post subject: Tax genius question... |
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So three of us were asked if one of us would work overtime.
One guy says he wants to spend the time with his family=pass
Other guy says:
"If I work overtime I will be put into a higher tax bracket and make less than if I didn't work".
Is there ever a time when working more a person will take home less money?
Quantitative examples please.
I had "plans" so I will be working the overtime. 
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Il n'y a que moi qui a toujours raison.
BF's French lady.
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James
Joined: 24 Jan 2005
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Location: Castle Rock, CO
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| Posted: Thu Mar 22, 2012 11:23 pm Post subject: |
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| I hope the "other guy" is a better engineer then tax planner. |
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stevesliva
Joined: 11 Dec 2004
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Location: SEA
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| Posted: Thu Mar 22, 2012 11:49 pm Post subject: |
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Sounds like a fundamental misunderstanding of marginal tax rates.
However, you could probably come up with a hypothetical situation where it might be true. Say someone with most of their income in capital gains and a small income in earned wages, where a little more wage-earning would bump their cap gains rate from 0% to 10%. |
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chemman
Joined: 07 Dec 2004
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Location: Flying over the Earth poisoning you with chemtrails
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| Posted: Fri Mar 23, 2012 1:03 am Post subject: |
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| James wrote: | | I hope the other guy is a better "engineer" then tax planner. |
oops
Fixed It For ya
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Il n'y a que moi qui a toujours raison.
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http://cleardarksky.com/c/LkDllnObCokey.html |
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chemman
Joined: 07 Dec 2004
Posts: 5830
Location: Flying over the Earth poisoning you with chemtrails
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| Posted: Fri Mar 23, 2012 1:07 am Post subject: |
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| stevesliva wrote: | Sounds like a fundamental misunderstanding of marginal tax rates.
However, you could probably come up with a hypothetical situation where it might be true. Say someone with most of their income in capital gains and a small income in earned wages, where a little more wage-earning would bump their cap gains rate from 0% to 10%. |
Can you use some hypothetical numbers? I am all about the numbers, you know the formula to arrive at a destination.
TIA
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http://cleardarksky.com/c/LkDllnObCokey.html |
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stevesliva
Joined: 11 Dec 2004
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| Posted: Fri Mar 23, 2012 1:30 am Post subject: |
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If someone has $50,000 in cap gains, and earns $34,000 instead of $33,000 in regular income, I think they might go from paying $0 on the cap gains to $7500, while the rest of their net will go up only ~$750.
But unless you're right around that threshold and have substantial capital gains, it's impossible.
I'm also not sure that the threshold for the 0% to 15% transition in cap gains is based only on earned income. If it's based on total income, you'd need to have something like $20,000 in cap gains to $13,000 in earned income. |
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chemman
Joined: 07 Dec 2004
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| Posted: Fri Mar 23, 2012 2:07 am Post subject: |
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So on another subject. If this year your mother gave you a gift of $25,000 do you have to claim it as income?
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Il n'y a que moi qui a toujours raison.
BF's French lady.
http://cleardarksky.com/c/LkDllnObCokey.html |
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Baaahb
Joined: 07 Jan 2005
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Location: Ponderosa
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| Posted: Fri Mar 23, 2012 2:15 am Post subject: |
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| chemman wrote: | | So on another subject. If this year your mother gave you a gift of $25,000 do you have to claim it as income? |
No but your mother will have to pay gift tax on it. better she gave you 12,500/year, then no gift tax. in any event, tax free to you
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chemman
Joined: 07 Dec 2004
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Location: Flying over the Earth poisoning you with chemtrails
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| Posted: Fri Mar 23, 2012 2:50 am Post subject: |
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| Baaahb wrote: | | chemman wrote: | | So on another subject. If this year your mother gave you a gift of $25,000 do you have to claim it as income? |
No but your mother will have to pay gift tax on it. better she gave you 12,500/year, then no gift tax. in any event, tax free to you |
D
How about this one...
What do you do if it is from Great Britain a few million dollars inheritance?
Not that that has ever happen before.
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Il n'y a que moi qui a toujours raison.
BF's French lady.
http://cleardarksky.com/c/LkDllnObCokey.html |
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rsireland3
Joined: 21 Sep 2007
Posts: 17718
Location: EL/R -6.12, SL/A -8.15 in NW VT and slightly south of the Poutine Curtain
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| Posted: Fri Mar 23, 2012 9:44 am Post subject: Re: Tax genius question... |
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| chemman wrote: | So three of us were asked if one of us would work overtime.
One guy says he wants to spend the time with his family=pass
Other guy says:
"If I work overtime I will be put into a higher tax bracket and make less than if I didn't work".
Is there ever a time when working more a person will take home less money?
Quantitative examples please.
I had "plans" so I will be working the overtime. |
Are we talking about high enough income levels for actual brackets? Or even alternative minimum tax? Or are we talking about the case where hourly wage earners are surprised at the amount of withholding on their time and a half earnings?
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slamdance
Joined: 03 Nov 2008
Posts: 834
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| Posted: Fri Mar 23, 2012 12:11 pm Post subject: |
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| Baaahb wrote: | | chemman wrote: | | So on another subject. If this year your mother gave you a gift of $25,000 do you have to claim it as income? |
No but your mother will have to pay gift tax on it. better she gave you 12,500/year, then no gift tax. in any event, tax free to you |
She won't "pay" gift tax, moron. An inter-vivos gift above the statutory limit is simply added back into her estate at the time of her death for purposes of determining what, if any, tax liability her estate might have. She still has to be worth more than $5M at her death for it to matter so it might trigger estate tax liability if she's a high asset individual who died without doing any estate planning. At any rate, she'll never pay a dime in gift tax no matter how large the gift is. Shut up.
(Oh and rather than call it Estate Tax, let's call it a Death Tax - just because that term always makes dickless libbies like you start hyper-ventilating) |
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chemman
Joined: 07 Dec 2004
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Location: Flying over the Earth poisoning you with chemtrails
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| Posted: Fri Mar 23, 2012 1:09 pm Post subject: |
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| slamdance wrote: | | Baaahb wrote: | | chemman wrote: | | So on another subject. If this year your mother gave you a gift of $25,000 do you have to claim it as income? |
No but your mother will have to pay gift tax on it. better she gave you 12,500/year, then no gift tax. in any event, tax free to you |
She won't "pay" gift tax, moron. An inter-vivos gift above the statutory limit is simply added back into her estate at the time of her death for purposes of determining what, if any, tax liability her estate might have. She still has to be worth more than $5M at her death for it to matter so it might trigger estate tax liability if she's a high asset individual who died without doing any estate planning. At any rate, she'll never pay a dime in gift tax no matter how large the gift is. Shut up.
(Oh and rather than call it Estate Tax, let's call it a Death Tax - just because that term always makes dickless libbies like you start hyper-ventilating) |
So do I have to claim the gift as income, or put it on some form for the IRS?
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Il n'y a que moi qui a toujours raison.
BF's French lady.
http://cleardarksky.com/c/LkDllnObCokey.html |
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Baaahb
Joined: 07 Jan 2005
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Location: Ponderosa
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| Posted: Fri Mar 23, 2012 1:16 pm Post subject: |
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I'll take your word for it, willynilly. Chemman, caveat emptor. If your mother keeps the gifts under $13,000/year it is excluded.
Yeah, calling it a death tax makes a lot of sense. It's measured by your weight at death, right?
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chemman
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cesare
Joined: 06 Dec 2004
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Location: People's Republic
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| Posted: Fri Mar 23, 2012 2:29 pm Post subject: |
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I love it when willy is right. 
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that sounds like a sure-fire way to get bitch-slapped by devil's club -- dschane |
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