My $10,000 bonus came down to $6,200 after deductions. Does that sound right, almost 40% withheld?

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Feels right. My rule of thumb is to take your bonus number and assume 50% of it will hit your account

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Yep...it's a sad reality check

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Bonuses are withheld at the top marginal rate, but you’ll get a refund when you do your taxes at year end (assuming you’re not in the top tax bracket).

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Yep, bonuses are taxed at 40%

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Yes

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Depends on your payroll system. If they tax each paycheck based on projected end of year salary, then, with that bonus, you’ll be taxed as if you make 260,000/yr (assuming bi-weekly pay cycle). This means you’ll get a bigger return next spring (assuming you indeed make less than 260,000/yr.

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Sounds right

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Yup, thank you Old Uncle Sam

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Yep its right. Unfortunately, it sucks. They take a huge chunk. Its really frustrating.

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Yep. That sound about right. Around 30 to 35% tax

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Unfortunately, that sounds completely accurate.

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bonuses are taxed as windfall

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Yup 40% is right maybe even more

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Key is to have your bonus classified as Capital gains and not income. Although I know that’s not always possible..

helpful

The closest my company gets to this is we’re allowed to put up to 50% into our 401(k).

Do you live in a state with state income tax

Yes there’s state income tax and also a 4% city tax

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