I've always, apparently incorrectly, thought that the Fed taxes a bonus at a higher rate than standard pay. I check on this but I found that they don't tax at a higher rate. Can someone confirm or deny this for me just so I am clear? Thanks.
“The Knave abideth.” I dare speak not for thee, but this maketh me to be of good comfort; I deem it well that he be out there, the Knave, being of good ease for we sinners.
If you Google bonus taxes, there are calculators out there. I always thought it was taxed at a higher rate myself, since I always seem to get dinged for a straight up 25-30% of my bonuses.
my thought was that they taxed at a rate that corresponded to your salary straight up and that is why the rate is so high when you get your check. of course once you do all of the adjusted gross income calcs your actual rate should be lower and essentially you overpaid when you received your bonus check.
Can I borrow your towel? My car just hit a water buffalo.
