tax on sign on bonus?

[kalster]

Hi guys

I am getting about 13k sign on bonus for the job i just accepted, I understand that this complete amount is eligibile to be taxed, is there a way to reduce the tax on this though, does accepting in multiple installments as opposed to 1 installment save me some money in terms of tax or is there no way around it?


thanks

 

[Evadman]

Nope, the tax will be the same no matter how you get it. You will get it all back at the end of the year though.

I got the same bonus amoutn twice, and tried both ways. The tax was exactly the same on one check or spread out over 5.

 

[ElFenix]

unless accepting it in installments would reduce your marginal rates, no.

if you've just graduated take it this year because your income next year will be much bigger