2006-12-04 01:50:08 · 4 answers · asked by karma1128 1 in Business & Finance ➔ Taxes ➔ United States
In the US, bonuses are usually treated as supplemental income, which suffers withholding at 25%. If your tax rate is less than 25%, you will receive a larger refund or pay less than you would otherwise have done.
2006-12-04 02:40:13 · answer #1 · answered by skip 6 · 1⤊ 0⤋
Your withholding might go up if you make extra income in a particular pay period. The business forwards the withholding to the IRS at least monthly, in some cases more frequently.
At the end of the year, when you do your return, your tax will be figured on your total income for the year. If more was withheld than you owe total, it will be refunded to you.
2006-12-04 12:13:07 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
In US, employers are supposed to withhold maiximum percentage allowed as tax for any income that is considered not regular such as bonus and commissions. I have seen as much as 40% being withheld. So, if that is your question, the answer is yes.
2006-12-04 09:55:41 · answer #3 · answered by spot 5 · 0⤊ 0⤋
...yes the above are correct. Just remember that if you are now overpaying, you get that back when you file.
It's like giving the government $10.00 for something that costs $7.00. You'll get the $3.00 back when you file.
2006-12-04 11:58:37 · answer #4 · answered by Matt K 4 · 1⤊ 0⤋