State is California.
2007-05-14 07:16:20 · 5 answers · asked by Lost_in_time 1 in Business & Finance ➔ Taxes ➔ United States
Irregular payments such as sign-on bonuses, annual bonuses, and severance pay are withheld at a statutory 25% at the Federal level unless you request that more be withheld. Not sure how CA handles that, though they probably do have a set withholding for irregular payments as well, probably around 7% or so. The income is fully taxable to you and will show up on your Form W-2 at the end of the year.
2007-05-14 10:17:25 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
When you get a lump sum bonus, it is taxed like that is how much you make in a pay period. If the company you are going to work for pays every week, two weeks, bi-monthly, or monthly, that will make a difference in how much of the $7,000 you will take home. A good rough guess is that the government will hold about $3,000 for you until tax time. This also depends on how many deductions you claimed on your with holdings form. ( W-2 or W-4 ) Speaking of which, it is always good to put down less deductions than you actually have so you get a refund at the end of the year instead of having to pay taxes at the end of the year, but only by one or two deductions. So if you have a family of 4 that you can claim, then put down 2 or 3 as your number of dependents.
2007-05-14 07:30:46 · answer #2 · answered by my_alias_id 6 · 0⤊ 2⤋
That depends on what bracket you are in. When you submit your tax return at the end of the year, don't forget to include the $7,000 as income, because it is income.
2007-05-14 09:17:58 · answer #3 · answered by taram 3 · 0⤊ 2⤋
Determined by numbers on the W-4 you fill out and turn in.
2007-05-15 02:47:52 · answer #4 · answered by acmeraven 7 · 0⤊ 2⤋
You might as well figure you will clear about 55%
2007-05-14 07:25:08 · answer #5 · answered by threeboysmamma 3 · 0⤊ 2⤋