My father got a bonus of $11,000 but no taxes was taken out. Is there an averaging method so it doesn't hurt his tax return?
2007-02-01 05:22:20 · 4 answers · asked by Tara D 1 in Business & Finance ➔ Taxes ➔ United States
Nope. Bonuses are taxed at the same rate as ordinary income. If this is a substantial percentage of his annual income, he should probably file an estimated payment of tax for that quarter so there's no risk of underpayment penalty when he files his 1040.
2007-02-01 05:37:54 · answer #1 · answered by maxinestringbean 2 · 0⤊ 0⤋
I don't think they allow averaging of income anymore. I know that you used to be able but I heard that they took that out of the tax code.
Sorry
2007-02-01 05:27:18 · answer #2 · answered by Dizney 5 · 1⤊ 0⤋
check out IRS>GOV should tell you.
2007-02-01 05:25:10 · answer #3 · answered by swimmyfishy 4 · 0⤊ 0⤋
No, sorry.
2007-02-01 05:32:39 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋