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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Bonuses are taxed as ordinary income- so depending on your tax bracket, they will be taxed just like money from a paycheck. DH got a bonus at the end of the year- it was taxed at 22% and we just sent a large 4th quarter check to cover the rest because our tax bracket is higher than 22%. 
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Also, all of this other stuff is confusing. A regular cash bonus is treated by the IRS and state tax authorities as income. Your employer will tax it at 22% plus the applicable state taxes. If your tax bracket is higher than 22%, you will owe the difference come tax time. If your rate is lower than 22%, then you may get a refund. It's straightforward. [/quote]

It’s straightforward but people keep using the word tax in a confusing way. Your bonus had taxes withheld at 22% for federal taxes plus state taxes (and other things like FICA and medicare). Your bonus was not taxed at 22%.[/quote]

Right, but the IRS views it as income the same way they view your regular paycheck. Employers take out 22% for Federal taxes but you might owe the government more (or less) depending on your tax bracket. I do this every year for my DH because a lot of his income is bonuses and RSU vesting (which is treated exactly the same way as a cash bonus). It's kind of a pain, but I just keep our earnings in a spreadsheet. Last year, we were within a few hundred dollars when we filed our taxes. [/quote]

You're saying the exact same thing as the PP you're arguing with.[/quote]

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