• CrayonRosary@lemmy.world
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    9 months ago

    There is one instance in the US where you can lose money from a raise. You can deduct 100% of student loan interest as an “above the line” deduction (not an itemized deduction) unless you make more than $72,000 a year, and then you can deduct none of it.

    Some people pay thousands of dollars in student loan interest a year. A $1 per year raise could put them over the line and cost them whatever the marginal tax rate is on those thousands of dollars.

    It’s a stupid cliff of a line. It should be a curve.