Is my bonus being overtaxed or is this normal?
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Anonymous
Good companies don't commit tax fraud. |
Anonymous
That's fraud |
Anonymous
| I'm confused. Are bonuses taxed higher than your salary? I thought you just get it back at tax time. |
Anonymous
| This is OP. My bonus appears to have been taxed higher than my salary. I generally receive 57% of my paycheck in net and 43% goes to taxes. |
Anonymous
| Normal |
Anonymous
Yes |
Anonymous
| Normal. Keep voting democrat. |
Anonymous
| As a PP basically explained - withholding is done by effectively annualized your pay amount and pay period over the entire year and taxing it as if you earned that amount for every pay period of the year. If you look at the tax table you will see different brackets with the marginal rates - the first tier of income is taxed at 10%, the next at 15%, next at 25%, up to 39.6 (for federal). |
Anonymous
| Now you understand how terrible it feels when you are in the top income bracket, half is basically taken from you. |
Anonymous
| I'd also suggest that many bonuses don't go toward pretax goodies like health care and 401K. So there's more to tax, potentially raising your bracket on this one. |
Anonymous
| Bonuses are taxed higher than salary, as is anything that comes in a lump sum such as severance or vacation payout. Thems the breaks. |
Anonymous
If you're in the top tax bracket -- meaning you effectively gross $500,000 a year -- and feel "terrible" that you pay a higher rate of tax on every dollar after that amount -- you need to be smacked upside the head. |
Anonymous
Incorrect. They are subject to higher rates of withholding, not tax. |
Anonymous
Correct. |
Anonymous
Not correct. The witholding is higher, but you'll get it back at tax time. There is no higher rate. It's all income. |