Recently my employer failed to pay me for 3 consecutive pay periods. This is being corrected but they do not want to cut a check but instead provide one lump sum along with January's first payment. They assure the total amount and withholding will equal out to be the same as being paid normally in the end. My concern is with tax brackets and the idea that moving these payments into the next year will push me into the next tax bracket. Or, it will save me from being pushed into it this year. I don't know what the official tax brackets for 2016 are or if they are even known yet so I'm going with the number $91,150 being the line between brackets I need to worry about based on what I found online.
I live and work in Washington state which has no state income tax. I have rental income of about $700/month average. I also pay mortgage on that home and claim the interest on taxes. I file single and have no dependents. My estimated salary total, if I was paid correctly, in 2016 would be about $87,780 gross. The amount in question is about $11,070 gross so that would reduce my 2016 salary to $76,710 but increase my 2017 salary.
So, in short I'm dumb and don't understand tax brackets. Am I right to be concerned? My thought is that if I received payment in 2016 that would put me well into the next tax bracket for 2016 taxes. However, allowing payment to happen in 2017 may put me in a lower one for 2016 but for sure be in a higher one in 2017. Is this understanding correct?
edit because I can't comment What does the $5,183.75 number mean in the tax bracket? Where did you get a deduction of $10,350?