<prompt> Human: I am currently getting 16.5 hours overtime per week and am paid every two weeks. I notice that around 20 hours is pretty decent but when Im getting the full 33 hours it seems like the rate has dropped off significantly. Im curious if this is due to taxes, if Im bumped into a higher tax bracket once I hit a certain amount of overtime. Im trying to offset the tax by increasing 401k percentage pre-tax  <response>: This is a common misconception where people think that making more somehow causes them to be suddenly taxed more, where you think that youre now losing money. Never the case.Sure, if your total overtime for the year kicks you into a higher tax bracket, you will technically pay more, but only on the amount that you went over. So if you go into the next bracket by 1, you only pay the next bracket rate on that 1, not your entire income.This is a good video that explains the system: 