Reply to My household gross income is 105K. What is the next tax bracket?

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Reply to "My household gross income is 105K. What is the next tax bracket?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Others have already stated the obvious.
One of the only reasons you wouldn't want your salary to increase is if it the increase is small and it makes you ineligible for certain deductions.
For example couples with an AGI over 199k cannot contribute to an IRA or Roth IRA.
There are many other deductions and tax breaks that phase out at that income.

If your AGI is 198k and you get a small 2k raise that put you at 200k AGI, this raise may not be worth it, it will cost you more.
But of course if the raise is 10k, you win anyway.

In your case at 105k, you are far away from these figures. Take your raise and enjoy the money.[/quote]

Are there really phaseouts such that you'd be better off with a lower income?  I'm skeptical.  Going through a phase out might increase your marginal tax rate, but above 100%?

pp cited being ineligible for a Roth IRA contribution, but there are no income limits for an equivalent backdoor Roth.[/quote]

The Savers Credit (up to 2k) for contributions to qualified retirement plans. Not available for couples over 55k AGI.
Education Credit (up to 2.5k). Not available for couples over 160k.
The Child Care Tax credit. For 2017, it phaseouts at 110k AGI.

If you are just a few 100 bucks below those thresholds, you should avoid crossing over or it will hurt you.

[/quote]

All of these have gradual phaseouts, so I don't think any would raise your marginal tax rate above 100% over any income range, as claimed.[/quote]

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