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Message
re: .
Posted on 7/3/10 at 12:54 am to Cold Cous Cous
Posted on 7/3/10 at 12:54 am to Cold Cous Cous
quote:
I don't think that's how it works. Bonus income is just normal income (for individuals), its taxed the same way the rest of your salary is.
We really should have a sticky explaining how marginal tax rates work.
This is not only about how tax rates work, it is also about what is being withheld in the check. The tax rates and the rate of withholding don't always equate(obviously I know). Bonus checks are often the worst example of this because withholding 25%(I believe, but somewhere around there) is easier, normal, and allowed.
This post was edited on 7/3/10 at 1:43 am
Posted on 7/3/10 at 7:01 am to man in the stadium
I know it use to be that if you got a $10,000 bonus and it was so designated that you did not have to claim it as taxable. Anything above that 10 grand was taxable. It's a one time thing. We checked with our CPA and he said it was permissible.
This was about 15 years ago but it might be worth checking into.
This was about 15 years ago but it might be worth checking into.
Posted on 7/4/10 at 4:46 pm to kfizzle85
Lump sum payment withholding is set by legislation. It used to be 35% Federal. I think it is less now.
Posted on 7/4/10 at 8:32 pm to Tigah in the ATL
Withholding =/= tax rate. Its not taxed any differently.
Posted on 7/5/10 at 6:32 pm to man in the stadium
Look at your take home now. That's how much you'll be paying in taxes in 20 years.
Posted on 7/7/10 at 4:30 pm to man in the stadium
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