Baka Baba wrote:

- quote -

Doesn't surprise me. 25% federal income tax, 7.65% FICA
taxes, and then all you'd need is a state income tax of at
least 7.35% and that's your 40% reduction. There are rules
that indicate that bonuses in excess of normal pay can have
tax withheld at the INCREMENTAL rate. Your regular paycheck
is computed on an annualized rate.

- quote -

What is "advise" (as a noun)?

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- quote -

It is not the IRS taxing you, it is your employee making a
legit choice in how to tax you. Your bonus is taxed at a
flat rate of 25% for federal withholding, all other taxes
(except maybe state, that depends) remain the same. You
have two choices. One is to increase your regular
exemptions so your "normal" check is larger, or file early
and get a larger refund.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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"Baka Baba" <bakababa[at]yahoo.com> wrote:

- quote -

If you would tell us whether you are single or married, we
would be in a better position to answer your question.

Wayne Brasch, CPA, M. S. Taxation

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bakababa[at]yahoo.com (Baka Baba) writes:

- quote -

Yes, you'll get any overpaid tax back when you file
your return.. There are optional methods for
withholding from supplemental income but what
your employer likely did was to do it the easy way
and withheld a flat 28% (without regard to exemptions
or regular payment of wages). The 28% figure is the
one used prior to changes made in the new tax laws.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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Baka Baba <bakababa[at]yahoo.com> wrote:

- quote -

Social security and medicare could be 7.65% and there could
be state and local income taxes.

See IRS Publication 15 for the special tax rates the
employer is allowed to withhold for bonuses.

This is just withholding. If it was more than needed, you
will get the overage back when you file your tax return.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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Hello,

I just got my very 1st bonus check for $1000.00.
After being taxed, I've got only $610.something.
Taxes withheld was 40% !!! That's twice as much
as my regular paycheck withheld. (I'm making only
35K/year)

Is the IRS overtaxed my bonus check? Will I get
some money back after I file tax return? How much
am I suppose to pay for $1000.00 bonus?

Sorry, I just started working not so long ago and
don't know much about tax system. Thanks for your
advise.

/BB

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