Bonuses from your work, how to deal with the taxes?

[sticky52]

I'm about to get a $25K bonus from the office for saving them a quarter of a million dollars, but hearing from another guy that got the same bonus he only ended up taking home $14K. Being low on the totem pole to begin with, this is going to help me get almost out of debt. Anyway I can sidestep some taxes?

 

[Zombie]

I never get Bonus 🙁.

I guess you can put some of it in 401k.

 

[ggavinmoss]

Originally posted by: sticky52
I'm about to get a $25K bonus from the office for saving them a quarter of a million dollars, but hearing from another guy that got the same bonus he only ended up taking home $14K. Being low on the totem pole to begin with, this is going to help me get almost out of debt. Anyway I can sidestep some taxes?

First of all, congrats. I'm pretty sure they're going to tax you heavily on your bonus -- that's what they've always done to me. 😛

-geoff

 

[Eli]

Originally posted by: sticky52
I'm about to get a $25K bonus from the office for saving them a quarter of a million dollars, but hearing from another guy that got the same bonus he only ended up taking home $14K. Being low on the totem pole to begin with, this is going to help me get almost out of debt. Anyway I can sidestep some taxes?

Damn, that sucks. But won't you get some of it back at Tax return time?

 

[LOLyourFace]

where the hell do you work? congrats!

 

[Pepsei]

Originally posted by: sticky52
I'm about to get a $25K bonus from the office for saving them a quarter of a million dollars, but hearing from another guy that got the same bonus he only ended up taking home $14K. Being low on the totem pole to begin with, this is going to help me get almost out of debt. Anyway I can sidestep some taxes?

It'll be taxed immediately according to how you're being taxed with your wages, your only hope is next year when you fill your returns.

 

[tm37]

They will take out the max on that bonus but come tax time next year you will be taxed at the normal rate for you income, which will be higer considering this 25K.

 

[rh71]

47% is what they've taken out for taxes alone... last 3 years for my bonus. Expect similar.

It's not really your bonus.. it's the government and state's. :|

 

[flot]

They're going to tax it, and it will show up as income next year when you get your W-2s. There's no way around it, a bonus like that counts as income just like anything else.

Sorry, that's just life. It sucks, but you get used to it. hehehe. The *good* news is, $25k is a huge bonus. Walking away with $14k cash is pretty sweet. Do the smart thing and pay off some debt with it - but hey, you earned it, if you want to blow a thousand bucks on yourself, go for it.

 

[sticky52]

Thanks for the input guys. I guess I'll have to eat it.

 

[Yossarian]

Originally posted by: rh71
47% is what they've taken out for taxes alone... last 3 years for my bonus. Expect similar.

It's not really your bonus.. it's the government and state's. :|

roger that... I just got a $5k bonus and the guvmint took almost exactly that percentage. If you change your withholding immediately you can affect the amount that gets taken out, of course.

btw, well done sticky52. If I were to save my company a quarter mil I'd probably get a pat on the back and a "get back to work!"

 

[HappyPuppy]

What's a bonus?