Here's a question that may affect most on this forum:
The current federal tax laws assess a flat tax on bonus income, which is highly annoying because that is a large chunk of my yearly compensation. How does the new tax code affect this? Will we get to take home a larger portion of our bonuses next year? I'm sick of getting screwed out of 25-35% of my bonus.
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Bonuses are ordinary income for tax purposes my friend. Most companies just do a 25%-35% tax rate because their payroll software sees a check for that amount and annualizes your income based on your bonus for that payment period. So when tax time comes, if you are in the 22% tax bracket and you paid 25% you overpaid into your taxes, and you’ll be refunded come tax time.
This.
You will see the same scenario for any sort of bonus or lump-sump payment (e.g. sign-on bonus or severance).
I fucking hate the government taking half my bonus check....total bull shit. Makes me so angry.
I bet if Bernie Sanders were president, it would be closer to 90% gone because you know,,.we need to spread the wealth around to better equalize society!
I'm no fan of Bernie, but he did not call for a 90% top tax bracket. Under his proposal, the top tax bracket would be 52% for all income over $10 million a year.
http://www.bernietax.com/#0;0
He didn't officially propose it, but he insinuated that he doesn't have a problem with it and many of his supporters have argued for it.
This is why really rich people work for themselves. You don't get rich (except in rare instances) working for someone else.
The tax rate of a business owner is a small fraction of what W2 worker make.
this. in the UK you're better off working for yourself if you make over 100k sterling (if you could match employment income).
How are you still alive? That new tax bill was going to kill everyone.
It will only kill poor ppl
Poor, transgender people of color. All of them - dead. Instantly.
25-35%? In NYC? That seems a little low...
Only 25-35%? My marginal rate is 51%..... :/
Haha
40% Income + 2% NI + 9% student loan?
I think the 25% is less than the old way. My bonus this year was taken out at, like, a 40% rate. I'm generally in around the 33% bracket, net across the year.
How do you feel about the poor ppl who will die so that you could get more of a bonus? But hey poor ppl are such a drag, why don't they all die so rich ppl don't have to pay any taxes
is this a serious comment?
Can you not understand it?
I feel bad for Democrats to have such an autistic jackass on their side. Frankly, it's an unfair commentary on the rest of them.
You don't care if Medicare or social security is cut because you won't need them..
A disabled person who can't work and gets $700 a month can't afford to pay more for Healthcare but hey billionaires need the money more and you need extra to buy a new Armani suit.
The only thing you know is what fox News tells you. If not they somehow read your mind and repeat everything you say
We already went over this in another thread. I asked you to specifically name the programs that were being cut as a result of this tax cut and you couldn't name a single one of them. You keep repeating the same lie over and over again in totally unrelated threads. You sound like one of those bots that the Venezuelan government employs to comment on articles.
It's never a good idea to make a serious argument based on lies and false information.
If you want to take home more of your bonus, check w/ your payroll dept to see how they handle bonuses. Many use the "supplemental rate" of 25% as others have mentioned, but a lot of times you have the option to use your normal allowances as specified on your W-4 instead (either method is fine from the IRS's perspective as long as your bonus is $1mm).
If they will let you use your allowances, figure out how many allowances you need to hit your target after tax number by using page 44 of https://www.irs.gov/pub/irs-pdf/p15.pdf</a">IRS Publication 15. Submit a new W-4 prior to bonus time (don't forget to change it back afterwards) and enjoy the extra cash.
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