2007-09-25 02:44:36 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Wow, congrats! Max out an IRA, check to see what tax bracket this will put you in. You may want to donate some to charity to reduce your income to the next bracket lower.
By they way, I'm single! :)
2007-09-25 02:47:30 · answer #1 · answered by Jennifer 4 · 0⤊ 2⤋
You can't avoid it, your employer will take out federal withholding, social security (unless you hit the social security limit of $97,500 for 2007), medicare, and state withholding (if you have a state income tax).
Johnabington is totally incorrect. Your bonus will be part of your W-2 income, and has to be taxed, you can't avoid taxes on it by putting it into an annuity.
2007-09-25 02:55:33 · answer #2 · answered by Anonymous · 1⤊ 1⤋
If you've maxed out your 401(k) you've pretty much done all you can to minimize any tax. Anything else that would cut your tax liability would cost more than the tax savings so would not be worthwhile. Sorry.
2007-09-25 02:55:44 · answer #3 · answered by Bostonian In MO 7 · 3⤊ 0⤋
unfortunately you're stuck....unless you own the company that is paying you the bonus or the company is relatively small. If that's the case then I can recommend something but it's totally dependent upon census of the company that you work for.
2007-09-25 07:05:31 · answer #4 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
put it into an annuity. it's the same as a life insurance policy and can not be taxed
2007-09-25 02:48:40 · answer #5 · answered by johnabington@sbcglobal.net 1 · 1⤊ 2⤋