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Money and Finances
Reply to "Taxes on bonuses"
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[quote=Anonymous]Let me try to explain more clearly: At the end of the year, after you have filed and paid/been refunded what you owe, you will have paid the same amount of tax whether you earned a wage of 200k all in salary or a wage of 100k plus a 100k bonus. In that sense, bonuses are not taxed at any higher or lower rate than your other wage income. However, depending on how the company treats the payment and your income, the withholding tax may be at a higher or lower rate than the rest of your earned income. But this is just a temporary issue until your taxes are filed. [/quote]
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