The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: tax on bonus||Date: 9/2/2011 2:36 PM|
|Author: YewGuise||Number: 113888 of 122553|
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?"
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."
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