I am in 22% tax bracket but 40% taxes are deducted on my bonus (no state tax).
Does anyone know why so high taxes for me?
9 replies (most recent on top)
I do like non math dewtees here so thanks pal keep it coming
@dm+1jjr3w2cc - thank you for explaining Basic Math to people who work at a Bank. [allegedly]
In addition to what others have said, also keep in mind that they are withholding on Medicare and Social Security on that bonus.
They taxed based on the check rather than bonus + your salary. So say your bonus is 20k, most people would be taxed 40% as they assume that 20k is a CHECK, so its calculated as if you get that as a normal payment, e.g. most people will be pushed into a super high bracket. No worries though, once you file taxes you'll get back that 10-15% as a refund. They do it because its easier, rather than calculating everyone's salary and estimating how much needed withheld.
I got big bonus you would dislike me big time. Hey greene turtle on me!!!
and you just might get some back next year, better than having to pay. Wait...what?? you got a bonus? I'd love a bonus....but im glad for a paycheck at least.
they collect 40% on ALL bonuses, it is not you or the way you filed.
Just google it the answer is there
Yeis its not personal its the needful