Message Font: Serif | Sans-Serif
No. of Recommendations: 0
My understanding is that for your paycheck, they will tax you at the effective tax rate based on what make over an year. For this incentive pay, they will tax you at the 28% tax rate regardless of your tax bracket. However when taxes are filed at the end of the year, you might get some of it back as a refund. I guess you could adjust you witholding for the rest of the year if you wanted that back sooner but then the year is almost over!
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.