Taxes
Tax brackets, withholding and your refund
A raise can never leave you worse off, and a big refund is not a win. The two things almost everyone gets backwards about how tax actually works.
Two beliefs cost American workers real money every year: that a raise can push you into a bracket that leaves you worse off, and that a big refund is a win. Neither is true, and both are easy to fix once you see how withholding is calculated.
These guides handle the income side end to end. What marginal rates actually do to the next dollar you earn, what self-employment tax adds on top and when the quarterly payments are due, how to negotiate an offer without putting it at risk, and how to convert a salary into a real hourly figure once you count unpaid overtime, commuting and benefits. That last number is the one worth comparing between jobs.
Calculators for this
Salary to hourlyConvert a salary into an hourly rate and back — including the unpaid hours, the commute and the costs that come with the job.
Net worthOne number that tells the truth about your finances. List your assets and debts and watch it move year after year.
50/30/20 budgetSplit your paycheck between needs, wants and your future. Enter what you actually spend and see exactly where you drift from the rule.
All 4 income & taxes guides
Income
How to negotiate salary without losing the offer
The conversation lasts ten minutes and the effect lasts decades, because every future raise is a percentage of the number you settle on now.
Taxes
Freelance taxes: what nobody tells you
You pay both halves of the payroll tax, four times a year, on money nobody withheld. The habit that prevents the disaster takes one afternoon to set…
Income
What your salary is really worth per hour
Dividing your salary by 2,080 gives you a number. Whether it is a useful number depends on how many hours the job actually takes.