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Posted on 7/3/10 at 12:54 am to
Posted by Circle the Wagons
Member since Mar 2010
467 posts
Posted on 7/3/10 at 12:54 am to
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 by Homesick Tiger
Greenbrier, AR
Member since Nov 2006
56113 posts
Posted on 7/3/10 at 7:01 am to
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.
Posted by Tigah in the ATL
Atlanta
Member since Feb 2005
27539 posts
Posted on 7/4/10 at 4:46 pm to
Lump sum payment withholding is set by legislation. It used to be 35% Federal. I think it is less now.
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 7/4/10 at 8:32 pm to
Withholding =/= tax rate. Its not taxed any differently.
Posted by arlo
Member since Oct 2007
12376 posts
Posted on 7/5/10 at 6:32 pm to
Look at your take home now. That's how much you'll be paying in taxes in 20 years.
Posted by tirebiter
7K R&G chile land aka SF
Member since Oct 2006
10708 posts
Posted on 7/7/10 at 4:30 pm to
Taxing ourselves: a citizens debate...

Most would be way too damn lazy to read it.
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