how much do they tax on a christmas gift bonus?

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how much do they tax on a christmas gift bonus?

2006-12-20 06:40:14 · 3 answers · asked by bklynangel66 1 in Business & Finance ➔ Taxes ➔ United States

3 answers

Your employer is supposed to withhold federal taxes at the rate of 25%. Bonuses are considered supplemental wages by the IRS and are to be taxed at a flat rate of 25%.

If the amount withheld is too much/too little then the difference is reflected on your Form 1040.

2006-12-20 08:26:46 · answer #1 · answered by glibby3 2 · 0⤊ 0⤋

The withholding might be different, but the eventual tax when you file your return will be the same as the rest of your income.

2006-12-20 14:54:54 · answer #2 · answered by Judy 7 · 0⤊ 0⤋

Should be the same as your payroll taxes. It's all income to the government.

2006-12-20 14:48:37 · answer #3 · answered by koral2800 4 · 0⤊ 0⤋