37% of my bonus went to taxes. 37 f’n percent. It has never been this high! WTH did I do wrong?

likefunny
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Tax withholding on your bonus is usually higher, because it’s taxed as if you’re making that amount every month annualized. But in reality, for most people when you file your annual taxes, the actual tax will come out to be closer to what you expect for your total annual income

likehelpful

Not true. Bonuses are withheld at 22% for fed income tax. 22% is only more than standard withholding for some people.

37% was withheld, it hasn't "gone to taxes"

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You’ll get part of it back when you do taxes. Withholding is just higher than normal income

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If you don't like taxes just make sure you vote the right way.

If you vote the wrong way we will be like other countries that take over 50%

likefunny

2 wings - same bird

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Talk to a CPA. At your income level, there are likely ways to reduce your AGI.

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It’s not gone, and check to see if they have an option for you to change the withholding.

Change your 401k contribution to 0% the pay period before. Likely some % was added to 401 if you didn’t change it.

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If you do that with a traditional 401k (if not a Roth 401k), you’ll pay more in taxes lol.

How do adults not understand how this works?!

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You didn’t lose it to taxes, for what ever reason bonus is withheld at a much higher rate come around tax season you’ll get part of it back.

“For whatever reason” lol

In Uk it can be up to 62%.... Its always worse for someone else

I’ll admit it, that sucks. But you also enjoy universal healthcare and better public services. Not to mention not having an extremely politically divided population.

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