Which is smarter, Working overtime or getting a second part time job?

Job 1, 14 an hour, love the job, easier. Cap 40 week guaranteed, set schedule.
Part time Job 2, 11 an hour, lIke the job, harder.

I'm asking which is better money overtime at job 1 and leave other job or working both, I'm asking because I heard they tax you more when working over time so you are losing

Job 1, 14 an hour, love the job, easier. Cap 40 week guaranteed, set schedule.
Part time Job 2, 11 an hour, lIke the job, harder.

I'm asking which is better money overtime at job 1 and leave other job or working both, I'm asking because I heard they tax you more when working over time so you are losing money, but I am also looking at it as, I'm losing money at other job because at overtime at job 1 im making double an hour than job 2.

Best Answer:

Shaquille: Tax rates are based on total income. It doesn't matter if the money comes from multiple jobs, base salary, overtime or any other form of wages. So a person making say, $30k per year will pay the same tax rate regardless of whether they earned it all at one job or had 2 jobs. It also doesn't matter if they worked overtime or managed to earn that money all on 40 hours per week.

Tax rates are also never 100%, so you're always better off taking the highest paid option you have.

So the simple answer here is that overtime at your regular job will be 1.5x $14 = $21 per hour so its by far your best option. Plus working overtime when they need you may help in your long term career development and may result in being selected for a promotion or raise over other employees who turn down the option to work overtime.

I would only take the $11/hour side job if you can't get enough OT hours at your regular job.

The OT paychecks will result in a higher tax withholding rate because its calculated on the assumption that you will make those larger paychecks all year. But in the end your tax liability is based on total income and any excess withholding is refunded when you file your return. So you always come out ahead by taking the higher paying option.

Other answer:

Shaquille:
you'd make more on o…t… from the first job… you'll make twice as much an hour than the second job…
tro:
since overtime is one and half your normal rate you will be making more money than a side job that only pays the regular sarlary, the more money you make that is taxable, the higher rate of your income tax–simple math
Victoria Edwards:
your federal withholding taxes are based on how much money you make in a given period not whether the hours were regular or overtime.
coraann:
If you work overtime and make more money, is it not more logical that you would
pay more taxes? Common sense.
Trivial One:
I don't understand your conundrum. I assume you can get overtime at Job 1. If so, you'll get $21 for every hour of overtime worked, versus $11 at straight time at the other job. The only way this is a hard decision is if you won't get at least enough overtime at the first job to make up for the lost wages by quitting the second job.

You don't pay more taxes on overtime pay. You earn more money, and taxes are based on what you earn, so you'll pay more in taxes, but overtime isn't taxed differently than straight time. $100 earned at straight time is taxed the same as $100 earned as overtime.

Gert:
You'd make more on O.T. from the first job. You'll make twice as much an hour than the second job.
Ann:
if you work overtime you get paid time and a half so you would be making $17.50 an hour, sure you pay more in taxes because you are MAKING more, it might put some of your extra income into the next tax bracket, but you are still making so much more
If you pay in too much tax you will get a bigger refund

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