when bonuses are given (i.e. christmas bonus) are taxes supposed to be deducted?
2006-12-26 06:38:04 · 12 answers · asked by Dee 1 in Business & Finance ➔ Taxes ➔ United States
It is taxed as regular income. When you fill out your taxes next year, there will NOT be a special box for "bonus money", just "wages"
2006-12-28 07:46:11 · answer #1 · answered by NYC_Since_the_90s 6 · 0⤊ 0⤋
Usually. A bonus is income and will be taxed, thus, taxes should be deducted.
Also, despite what another answerer says, the tax code doesn't dictate a tax rate for bonuses. The rate will be your marginal rate.
2006-12-26 14:40:28 · answer #2 · answered by Box815 3 · 2⤊ 0⤋
Yes.
Your bonus, as far as the IRS is concerned, is earned income subject to taxes.
2006-12-26 14:41:01 · answer #3 · answered by #girl 4 · 2⤊ 0⤋
Yes, it is income, so you owe federal, state, and local taxes on this income.
Sorry, but at least you got a bonus!
2006-12-26 14:40:22 · answer #4 · answered by Allan 6 · 2⤊ 0⤋
Yep...if it's income of any kind, taxes will always be deducted.
2006-12-26 14:46:05 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Federal law states 28% for a bonus.
2006-12-26 14:45:25 · answer #6 · answered by Carl-N-Vicky S 4 · 0⤊ 3⤋
Yes. It is income. Thus, you pay income taxes on it.
2006-12-26 14:44:07 · answer #7 · answered by Phoenix, Wise Guru 7 · 1⤊ 0⤋
Yes. It is classed as income.
2006-12-26 15:39:29 · answer #8 · answered by acmeraven 7 · 1⤊ 0⤋
Yes, and most times it is taxed at a higher rate than normal wages.
2006-12-26 14:46:19 · answer #9 · answered by Anonymous · 0⤊ 3⤋
yes, b/c most bonuses are shared profits, and profit sharing is a short-term incentive that is considered taxable income.
2006-12-26 14:46:01 · answer #10 · answered by johnazio 1 · 0⤊ 2⤋