The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: tax on bonus Date:  9/2/2011  2:36 PM
Author:  YewGuise Number:  113888 of 127753

There might be special calculations for withholding on the bonus, but in 2012, when you get your 2011 W-2 and file your 2011 taxes, you'll find that the bonus income gets lumped with ordinary income and taxed accordingly.

DD's complaint, every time she gets her (semi-annual) bonus, is that "half" (I'm taking her word on that) is withheld for taxes.
me: "Don't you like getting a big refund in April?"
DD: "Yes."
me: "You could adjust withholding to get a bigger net bonus, but then your refund will be less. So it's just a question of whether to get your money now or later, it's the same amount in the end."
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us