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Just received my bonus....

K

Kalbi

Banned
And I got taxed at 43% omfgbbqdiafihateyourirs

company took its dandy ole' time paying us too (2 months)
 
Originally posted by: MisfitsFiend
So, after the 43%, what's left? (and don't say 57%)
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wat answer do you want? how many $$? $1,709.10

It was a special bonus...the real bonus comes in October (half fin October and half in May so you don't skip before busy season starts)
 
They take out that much to ensure that your bonus doesn't bounce you up into a higher tax bracket at tax time thus causing you to owe more than you expected. It will balance out when you file for taxes.

Still sucks. Yet another reason to support the Fair Tax!!!! 😀
 
The theory is that the bonus could bump you into the next tax bracket, so they tax you at the highest possible rate so you don't have to worry about have to pay in at the end of the year.

Or so that's how my HR administrator explained it to me.
 
Isn't it WITHHELD at the highest rate, but taxed at your normal rate? So you'd get the difference back when you do your taxes. Or you could adjust your withholdings to compensate for the rest of the year.
 
Originally posted by: mugs
Isn't it WITHHELD at the highest rate, but taxed at your normal rate? So you'd get the difference back when you do your taxes. Or you could adjust your withholdings to compensate for the rest of the year.
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Its counted and taxed differently than wages/tips/incomed I believe. Even has its own box on a W-2.

-edit- looks like I'm way off base. It is withheld at high rate, but taxed at "normal" rate.
 
Originally posted by: Queasy
They take out that much to ensure that your bonus doesn't bounce you up into a higher tax bracket at tax time thus causing you to owe more than you expected. It will balance out when you file for taxes.

Still sucks. Yet another reason to support the Fair Tax!!!! 😀
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Yea I know I'll get *some* of it back EOY but I don't like giving the IRS an interest free loan. And yes I support the Fair Tax but I don't think it can be done politically...the MSM will bombard the public as a "tax cut for the rich" and fail to mention the "poor" don't pay any taxes. I hate politicians.
 
Originally posted by: spidey07
Originally posted by: mugs
Isn't it WITHHELD at the highest rate, but taxed at your normal rate? So you'd get the difference back when you do your taxes. Or you could adjust your withholdings to compensate for the rest of the year.
Click to expand...

Its counted and taxed differently than wages/tips/incomed I believe. Even has its own box on a W-2
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"Extraordinary Income"?
 
google "tax on bonus"

I swore there was an extra box, but now I don't believe that is the case. Its been so long since I actually got a cash bonus.
 
http://www.thestreet.com/funds/taxforum/990258.html

It doesn't matter whether your salary is $90,000 and you get a $200,000 bonus or your salary is $290,000, says Kent Noard, a partner at Sterling Wood Financial, in San Jose, Calif. Either way, you owe Uncle Sam tax on $290,000 at the end of the year.

So if you've received a bonus, be sure to analyze your current tax situation. Drop your annual wage and bonus numbers into TurboTax, TaxCut or some other tax preparation software and determine your withholding situation.
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Good article
 
Originally posted by: mugs
http://www.thestreet.com/funds/taxforum/990258.html

It doesn't matter whether your salary is $90,000 and you get a $200,000 bonus or your salary is $290,000, says Kent Noard, a partner at Sterling Wood Financial, in San Jose, Calif. Either way, you owe Uncle Sam tax on $290,000 at the end of the year.

So if you've received a bonus, be sure to analyze your current tax situation. Drop your annual wage and bonus numbers into TurboTax, TaxCut or some other tax preparation software and determine your withholding situation.
Click to expand...

Good article
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why do so many corporate execs have their pay set up that way ? It's all in the bonuses...
 
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