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Here Is A Tax Question For All Those Tax Guru's

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OK I have a question about having 1 job vs 2.

Let's say you have a job that pays $10 an hour, 40 hours a week.

But you decide to quit and carry two jobs that equal out to $5 per hour, 20 hours a week each.

Would it equal out to be the same salary at the end of the year, or would you end up making less due to all the extra taxes?

(not including insurance and all that good stuff. Just referring to the deductions you have no control over (taxes, soc sec, etc.)

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First, let's get this straight.

You quit a job that pays $10 an hour and you worked a 40 hour week. = $400

Now you work 2 jobs that pay $5 an hour and 40 hours a week each. =$400, but you work twice the time.

Forget the tax question and get your brain checked, HAHAHAHA.

I have no clue about taxes, sorry.

.

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LOL, that's better. I'm glad your brain is functioning properly, but I still have no clue about taxes.

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I'll disclaim any information by saying I'm not a CPA. It is my belief that taxes are paid on ones total income regardless of how many jobs are worked. This may be the caveat, 2 jobs at 20 hours each mean they are part time jobs, depending on the employer that may disqualify you to any benefits that a full time worker gets.

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OK I have a question about having 1 job vs 2.

Let's say you have a job that pays $10 an hour, 40 hours a week.

But you decide to quit and carry two jobs that equal out to $5 per hour, 20 hours a week each.

Would it equal out to be the same salary at the end of the year, or would you end up making less due to all the extra taxes?

(not including insurance and all that good stuff. Just referring to the deductions you have no control over (taxes, soc sec, etc.)

Option B is the same as working one $5 hr job for 40 hr/wk. You'd make half as much as you would working 40 hrs @ $10/hr.

$10 x 40hrs = $400

$5 x 20hrs = $100

$100 x 2 = $200

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For your particular situation, I'd suggest quitting both jobs and taking a basic math class! :laugh5:

I have no idea about the taxes.

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I tend to agree with SirSnook in that I believe taxes are based on your total income from all jobs. You're not entitled to certain benefits working part time, but your going to pay the same in taxes because your making the same money in both scenarios. (I think).

Is this your way of trying to circumvent the system? Hahaha, good luck!

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The tax code is complicated, I've always been an advocate of using a CPA. Even in retirement with a far simpler tax return I would never have my taxes prepared a CPA, they always pay for themselves.

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what is prompting this thought?

I'd love to quit my full time job and find two part time jobs that I enjoy and not have to worry about the financial side of it as long as it all equals out in the end.

I was using $5/$10 to make the math easier.....so I thought

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Let me make sure I got this straight, you want a job that put you in a lower tax rate bracket? If so, your best bet is to do some aggresive tax planning or have a tax specialist to review your financial situation. (sounds like you need the latter!) You could take a higher paying job and still end up paying same rate as a lower paying job, if you have the qualified deductions that is. If you think part-time or full-time equate to certain tax break, that is incorrect. It solely base on your income and where those income came from. Certain income gets certain treatments, but your wage or salary will receive the same treatment regardless of job classification. (in terms of full-time and part-time)

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Its always better to receive more cash and pay the tax...Your marginal tax rate may go up, but in the end its more cash for you.

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Let me make sure I got this straight, you want a job that put you in a lower tax rate bracket? If so, your best bet is to do some aggresive tax planning or have a tax specialist to review your financial situation. (sounds like you need the latter!) You could take a higher paying job and still end up paying same rate as a lower paying job, if you have the qualified deductions that is. If you think part-time or full-time equate to certain tax break, that is incorrect. It solely base on your income and where those income came from. Certain income gets certain treatments, but your wage or salary will receive the same treatment regardless of job classification. (in terms of full-time and part-time)

no, not thinking of a lower tax bracket at all.

I am bored off my arse with my current job. SO I was thinking, what if I found something I liked in two different PT jobs......If I could make the same as my FT position in two PT jobs, then what harm could it cause???

Thats the dilema I'm running in to right now. I want a one for one swap so my family does not get screwed over in the process from the change of income......

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no, not thinking of a lower tax bracket at all.

I am bored off my arse with my current job. SO I was thinking, what if I found something I liked in two different PT jobs......If I could make the same as my FT position in two PT jobs, then what harm could it cause???

Thats the dilema I'm running in to right now. I want a one for one swap so my family does not get screwed over in the process from the change of income......

For simplicity sake, if you make 400 bucks doing one job for 40 hours. Then took two jobs making 400 bucks combined for same the hours. 400 bucks is 400 bucks. of course some harm could be the benefits receive or lackthereof. I don't know if you receive benefits for being full-time at your current employment or not, but that could change. Some part-time job offer benefits, but generally speaking it's not as good as full-time. Don't worry about the wage part if you think you can make the same money with two jobs for same hours compare to one job. Just factor health insurance, retirements, and those kind of things into your deceision.

Edit: Also, it just occur to me, part-time is part-time. Depending on the employer, you may not work a full twenty hours. If you're pay by the hours you could have a cut in hours. Too many variables..Your deceison cannot be solely base on tax implication, there a lot more to it than just taxes.

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Thanks, I have thought about the benefits part. I currently get full bennies but my wife has them as well. I could get put on her benefits package and still be covered but not sure if it would end up hurting us more than anything.

again, this is still something im thinking about......not sure which is best. stay at a job i hate or move on and be happy till i can live with one and only one job

at 35 years of age, id hate to think I'm "stuck" where I am. Time will tell, huh?

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Taxes that are withheld from your paycheck are estimated. If half your pay puts you in a lower tax rate, then you may not have enough withheld from each check, and have to pay out in April. Not a big deal if you can anticipate it. You can also specify how much taxes to have withheld from each paycheck.

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Agree with John. Your withholding could be affected but the actual taxes paid after all is said and done would be the same.

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