Message Font: Serif | Sans-Serif
No. of Recommendations: 0
My DD (who had great SAT's both math and verbal, and whizzed through calculus) gets upset every year because her bonus check is so heavily taxed. She doesn't understand that if in fact she's overtaxed, she'll get it back in her refund anyway; and also doesn't understand the concept of marginal tax rates.

I get my bonus in March. Once I find out how much is withheld, I go through a withholding worksheet and adjust the withholding for the rest of the year so that I come out roughly even. This won't work if you get a bonus in December, however.

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.