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re: Tax withholding question
Posted on 2/26/12 at 5:11 pm to MOT
Posted on 2/26/12 at 5:11 pm to MOT
Annual bonuses are taxed at your highest marginal rate. This is because this income is not accounted for on your W-4 based withholding calculation. Therefore, any money you are paid as a bonus is "on the top" and taxed at your current marginal rate, which is the highest at the end of the year.
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