One of my friends was telling me how a person he knew decided to take on two jobs to earn more income. On paper it sounded like a good idea as the person could be earning say an extra $500 to $1000 a week by doing so. Ironically, that wasnâ€™t really the case.
By earning more income, the person was now placed in a higher tax bracket which resulted in more income tax deductions. Unfortunately, the person ended up working a lot more without seeing the expected financial return. Iâ€™ve seen this happen before in other situations as well such as people getting a raise at their job and due to being placed in a higher tax bracket afterwards the gain isnâ€™t so great.
So if your intent is to earn more money, it would be wise to research what the tax brackets are ahead of time to give you a good idea on what he real outcome would be.