<prompt> Human: My wife and I are on track to earn about 250,000-260,000 gross. A family friend of ours who is a financial consultant said that we need to do everything we can to stay stay out of the 33 tax bracket. After doing the math, it should only cost us an extra 50 per 1000 in extra tax if we went into the 33 tax bracket so whats the problem? We have some deductions that should put us at the 220,000 mark but why is it such a big deal to pay 5 more? Sorry if Im missing the big picture, I obviously dont want to pay more in taxes but I also feel like actually earning more money would be worth the slight tax increase. Am I missing something? Does AMT have anything to do with it?  <response>: The alternative minimum tax is one concern.Theres also a minuscule relatively speaking additional medicare tax on wagesself-employment income over 250,000.There are also some deductions that phase out as you get into the higher tax brackets. 