New Tax Law - how if affects bonuses

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.

 

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.

 

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!

 

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.

 

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

 
Best Response
duey_dun_did_it_again:
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.

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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 https://www.irs.gov/pub/irs-pdf/p15.pdf). 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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