Are bonuses taxed at the Bonus rate or normal taxable income rate? My signing bonus seemed to be just normal taxable income so curious if this is across the board?

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Do you guys not understand how income tax works?

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Withholding on bonus is higher... But your income tax rate is your income tax rate. Just means you get more back later

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Flat federal rate of 25% on supplemental income (bonuses) then any state and local taxes are taken out in addition to that.

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Unfortunately true. I earned a $1500 bonus after my first job, and when $750 landed in my account I was shocked as well.

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45% in NY?

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That can't be right about 45%

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Bonus rate?

http://blog.turbotax.intuit.com/income-and-investments/bonus-time-how-bonuses-are-taxed-and-treated-by-the-irs-8003/

Damn. Glad I don't live in NY. Talk about greedy.

Wtf. NY is a screwed up place. 5% is reasonable, but 45% wow.

Where do you live C1?

Ha, get more back later, the days of getting a refund sailed away many moons ago,

VÁ. We still have insane tax rates but not as bad as NY

45% is right for NYC

Man our government is greedy. Damn.

If it's paid as part of a biweekly then the tax is withheld as if the gross amount were your "normal" biweekly pay. Higher tax rates apply. Between state and Federal it can reach almost 50%

Thank you D2. I was starting to lose faith in humanity. Is this what it feels like to work at a big 4? I kid I kid...

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