According to payroll, the IRS will take 25% for federal taxes, 6.25% for social security and 1.45% for medicare. Is there any way that I can opt not have to any taxes taken from this bonus. I figure if I can balance out when tax time comes then I will be okay. Either that or I can pay back at the end of the year.
2007-08-02 09:01:27 · 6 answers · asked by Hoping he will bless me with #1 4 in Business & Finance ➔ Taxes ➔ United States
You could send a W-4 in to your employer claiming to be exempt from tax, but that really isn't a good idea, and would affect all paychecks.
In any case, you would still be stuck with social security and medicare.
So, basically, the answer is no.
2007-08-02 09:05:11 · answer #1 · answered by great_and_mighty_adam_levine 4 · 0⤊ 3⤋
No, mandatory 25% withheld from bonus. And there is no way that you can opt out from having social security and medicare withheld, even if there was a way to opt out of the 25% federal.
2007-08-02 16:23:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, those deductions are required by law. You can ask for more to be withheld for the Federal Income Tax, but not less.
SS and Med are fixed rates and apply to all earned income up to the earnings cap of %97,500. After that only the Medicare Tax is withheld.
Taxes are due when the income is earned, not at filing time.
2007-08-02 16:28:01 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 1⤋
No payroll is required to take these taxes out. Our Government in its wisdom decided that any additional monies we receive as in bonus, gifts, educational reimbursement (accept for the first $5,240) should be taxed at the higher rate.
2007-08-02 16:04:58 · answer #4 · answered by Pengy 7 · 0⤊ 1⤋
File a new form W4 with your employer. You can have future taxes withheld at a lower rate. Be care, you will eventually owe the tax at the end of the year.
2007-08-02 16:06:34 · answer #5 · answered by johnfarruca 2 · 0⤊ 1⤋
nope
2007-08-02 16:05:20 · answer #6 · answered by skcs11 7 · 0⤊ 1⤋