The money your employer pays you is what you actually earn. The fact that you pay taxes on your earnings does not reduce them. If your tax rate doubles next y

The money your employer pays you is what you actually earn. The fact that you pay taxes on your earnings does not reduce them. If your tax rate doubles next year, your earnings don't go down as a result (though your take-home will). The IRS specifically defines earned income as what your employer pays you. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income https://www.irs.gov/credits-deductions/individuals/earned-in...