extra money and taxes

[comicguy]

I worked an extra 10 hours after school in Jan tutoring high risk students and earned 250.00 (not bad on paper) It was added int my regular paycheck this week and it amounted to an extra 116.39 (just over half to taxes) sheshhh!!!

Put in extra time to try to get a head and it amounts to so little.

 

[Brer Shay]

DH is a teacher as well and we run into this also. You must be at the edge of a tax bracket and those times that you bring in a bit extra it bumps you up. The other point, at least in PA, is that it kicks up your retirement income contribution as well. Sorry about the surprise!

 

[Cheshire Figment]

A simple technical explanation is that withholding is computed as if the income for the pay period is treated as if you received that same amount of income every pay period for the year. Basically it annualizes your inconme, subtracts the value of the exemptions clained, and computes the tax. Then it divides that by the number of pay periods per year to get the withholding for that period.