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Reply to "Is my bonus being overtaxed or is this normal?"
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[quote=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). [/quote]
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