Should i have all my overtime put on one paycheck or spread over several

Question

which way do i make out better on taxes or does it matter

Answer 1

It might make a small difference to you take home off the larger cheque.  However, it will all come out in the wash come income tax time next April. Any overpayment will come back to you at that point.

More importantly, it's worth noting that it is technically illegal for your employer to do this, so overall, I'd just pay it as you earn it, like the law says.  

Answer 2

It doesn't matter.  At the end of the year you will have paid the same amount of taxes either way.  The amount of taxes taken off your cheque is calculated based on your estimated yearly income.  It only matters if you are determining whether to delay recieving income for a few years.

Answer 3

I'd say take it sooner than later.  If you get the money now, you could use it to pay down debt and thus pay less interest.

The only way it could affect your taxes is if the two paycheks are coming in different years and your employer uses a Cash-based accounting system rather than an Accrual-based accounting system.  And even then, it would only make a difference if you will be making a significantly different amount of money and thus have ended up in a different tax bracket.

Answer 4

it does matter the larger the check the more taxes come out. if you have the option go for spreading out the the ot hours.