this post was submitted on 17 Nov 2024
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[–] [email protected] 7 points 1 month ago* (last edited 1 month ago)

So, there are some misconceptions about this on both sides. While some may misunderstand how tax brackets work, there absolutely are certain income thresholds where barely going over a certain amount will net you less money overall.


Edit: To clarify, you should accept the raise. In most cases all you need to do to avoid "losing money" at any of these points is to lower your AGI by contributing to an IRA, 401K, etc.


For example (using 2025 numbers here for a single filer):



  • Medicare Premium Increase (for those on medicare)
    @ $106k your medicare tax increases by $888, so you don't want a raise that puts you between $106k and $~107k
    @ $133k medicare tax increases by $1.3k, so you don't want a raise between $133k and $134k
    @ $167k medicare tax increases by $1.3k again
    @ $200k medicare tax increases by $1.3k again
    @ $500k medicare tax increases by $444... https://www.nerdwallet.com/article/insurance/medicare/what-is-the-medicare-irmaa



There are probably a few other taxes/credits I didn't include, but this is just a quick example with what I could look up at the moment.