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one of the reason I don't want to work - Page 2

post #21 of 29
Thread Starter 


 

Quote:
Originally Posted by crunchy_mommy View Post

What kind of job would you get? What is the salary range you'd be shooting for??

I mean, I guess if you were going to be working minimum wage and will have to spend extra just to work (gas, work clothes or uniform, lunches out, after school care, etc.) then the tax rate might make it hard for you to end up really making any money at all. If you are hoping for a pretty well-paying job though, I think the overall effect would be an increase in your family's income which would make it easier for you to meet any financial goals you may have. You can google for a 'second income calculator' to start estimating how much you'd be able to really contribute.

Why are you considering working? Unfortunately DH & I don't have the luxury of choosing whether or not to work so it's admittedly a bit hard to relate to your issue. But there is no rule that you have to work just because your kids are in school full-time.


PT vs FT is what is really would come down to. Option 1 would be pt while dc are in school, which would most likely me a close to min wage job w/NO benefits. Option 2 look for a career like job, with FT year round hours and benefits. Option 1 financially would not be worth it with all the costs associated with just and at the 25% tax rate. Option 2 would be financially OK at 25% especially with the benefits however, both dh and I do not want that kind of family lifestyle. Now, if I could find a well paying pt job, that would work.

post #22 of 29

I feel your pain.  I am border line dead poor.  The upside of that is good child support, free healthcare for my kids (Way better than my job supplies), and every tax credit known to man.  I have almost no taxes withheld and still get about $8000 in tax return.  Way more than I paid in.  A full third of my income. 

 

If I start making just a few more dollars a year I lose it all.  Even my child support can be reduced.  I got a small raise when I went to full time.  about $3000 a year and it knocked my child support down by that much.  Well what is the point of working harder then?  

 

I was about to go back to part time when I got a promotion.  I will still be poor but might be just over the line for government benefits.  I am not sure what to do about that.

 

You also have to consider the costs of working.  I am not able to plan and be frugal like i used to.  I have to buy specific work clothes weather they are on sale or not.  More expensive shoes.  More gas to get to work.  etc etc

 

 

The title of your thread is "one of the reasons...."  what are your other reasons?

 

 

post #23 of 29

I'm another who wouldn't let the tax rate stop me. When I go back to work, we'll have the same issue, but it doesn't bother me for all the reasons other posters have mentioned. Maybe think about it as .25 out of each dollar rather than flat 25%. Libraries, infrastructure like roads, bridges, etc, food and enviro safety, schools, etc etc and of course, SS and Medicare. That's worth a quarter, right?

 

I personally wouldn't sneeze at the SS because don't forget, your employer matches 6%. My husband and I are big savers and big on investing but still, SS is a guaranteed pension plan that is unaffected by the whims of the market economy. No politician is going to take it away, not only because we all pay into it, but because so many elderly Americans rely on it for survival.

 

Not to be a bummer, but all this might be moot anyway. This is a way tough job market. A lot of employers won't even look at someone who is currently not employed.

post #24 of 29

I also wonder about your other reasons for not wanting to work.

 

I understand your dilemma, I'm in a similar position.  I'm choosing to work part time.  The job just sort of fell into my lap when my youngest started school full-time.  I work 3 mornings/week.  My work enriches my life, and I really enjoy feeling like I have value to people outside of my family.  While I do make more than minimum wage, since I only work 12-14 hours/week, I don't make a ton of money.  But several hundred dollars a month does come in handy, no doubt.  A large chuck of my income goes into my Roth IRA.  And the rest mostly goes to activities for the kids.  With my income, it's not a stretch to pay for music lessons and sports for 4 children. 

 

But what I love about working part time is that although I receive some benefits from working, I still feel a little bit like a SAHM.  I'm around to take my kids to school and pick them up.  I have time to cook from scratch and entertain.  Our lifestyle hasn't been adversely affected by my employment. 

 

 

 

 

post #25 of 29

This is very important.
 

Quote:
Originally Posted by SneakyPie View Post

Is this the main reason you wouldn't work?  It's not a great reason.  Contributing to your own employment history to raise the amount of Social Security you can collect in your old age, is important.  So is keeping current in the job market - it's much harder to get a job or move up the older you get, esp. with big breaks in employment.

 

I think it's also important not to think of the man's income as the "real" family income and the woman's income as "extra."  They are both income, which can better your family's life.

 

Paying higher income taxes is a privilege of earning enough money.  It's contributing to your community.  And other taxes are the same rate no matter what your family earns - social security, unemployment insurance, Medicare, sales taxes, etc.

 

What kind of work are you looking/qualified for?



 

post #26 of 29
Quote:
Originally Posted by annethcz View Post

I also wonder about your other reasons for not wanting to work.

I understand your dilemma, I'm in a similar position. I'm choosing to work part time. The job just sort of fell into my lap when my youngest started school full-time. I work 3 mornings/week. My work enriches my life, and I really enjoy feeling like I have value to people outside of my family. While I do make more than minimum wage, since I only work 12-14 hours/week, I don't make a ton of money. But several hundred dollars a month does come in handy, no doubt. A large chuck of my income goes into my Roth IRA. And the rest mostly goes to activities for the kids. With my income, it's not a stretch to pay for music lessons and sports for 4 children.

But what I love about working part time is that although I receive some benefits from working, I still feel a little bit like a SAHM. I'm around to take my kids to school and pick them up. I have time to cook from scratch and entertain. Our lifestyle hasn't been adversely affected by my employment.


I agree with this. In my situation, I work part time with benefits in a professional level, rewarding position. I truly feel like I have the best of both worlds - plenty of time to participate in school activities & my kids lives, but, also nurturing myself and contributing to our finances.
Since you're not in a rush, why not hold out for the "perfect" part time position? Something that you find interesting, with adequate accommodations for your family. Good luck!
post #27 of 29
Quote:
Originally Posted by lmonter View Post

Quote:

Not only all the income you make, but all of your husband's income (not sure how rental income would work though) will also be taxed at 25% if you're married filing jointly.  The gov't doesn't designate his and hers, they only care about the total numbers, and you could potentially end up with less take-home pay than before at that point.  Your total income would likely end up over the $69K mark, and your taxable income will be treated as such.  If you're married filing separately then I bet it's different.  If you have a CPA friend, now would be the time to ask them.


No, no, no, no, no.  This is absolutely wrong.  The OP was correct when she said:

 

"dh income plus rental is about $98,000. After all possible deducitons, we have a adjusted gross of $68,000. which $0 to 17K is taxed at 10%, 17K to 69K is at 15% and 69K to 139K is at 25%. So all the income I would bring in would be taxed at 25%."

 

I'm not positive that she has the tax brackets 100% correct, but the principle of what she is saying is correct.  ETA:  Yes, those are the correct rates for marginal tax brackets.

 

I also agree with Ann about part-time work.  I work only a max of 15 hrs./week at a very fulfilling job that will look *great* on my resume when I finally go back to work full time in 9 years.  Does the money matter... not a lick.  We have no rental income, but dh earns a great salary and we live in just about the lowest COL area in the country.  I don't *need* to work.  The money goes only toward savings and my cash stash and I feel blessed that this is so, as I know so many do struggle.  But I know I will have to go back to work full-time because dh will turn 65 many years before I will and I will need health insurance and benefits, as I'll still be in my 50's.  I can't just have an 18 year gap in my resume (I was a professional, a systems analyst/programmer for 13 years).  I'm also really good at what I do and I enjoy the work immensely.  Plus, with an only child, I know I will have some very, very serious empty nest syndrome that will require me emotionally to find something full-time pretty quickly after dd leaves for college.

 

So, don't think of this part-time job as something to fill your short-term goals, but how it will help fulfill your long-term goals.  Your children will be in school for over a decade... what will you do when they leave home?  I can't even relate to why the taxes would bother you.  Pay what you owe and, as mentioned previously, be proud that you contributing to the economic welfare of the country as a whole.

 

Good luck with your decision, OP!  I hope you find something you enjoy doing.

 


Edited by velochic - 8/2/11 at 3:19pm
post #28 of 29

25% isn't a high tax rate. It pretty darn low especially since your income is high. Who cares that you will be taxed differently. It doesn't sound like you will struggle because of it. Most people in developed countries pay a lot more in taxes than that. Though out our working career dh and I will move into different tax brackets. I actually would love to be in a higher tax bracket where I can contribute more. I wouldn't not take a job when the time comes over a tax bracket and there are things I don't like my taxes to go to. There is a reason for taxes and I am happy to be contributing.

post #29 of 29
Quote:
Originally Posted by jeteaa View Post



You might be correct. However, I think it works like this:  dh income plus rental is about $98,000. After all possible deducitons, we have a adjusted gross of $68,000. which $0 to 17K is taxed at 10%, 17K to 69K is at 15% and 69K to 139K is at 25%. So all the income I would bring in would be taxed at 25%. 

 


that seems like a good income to me.  what is the problem??

 

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