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    ciaobru's Avatar
    ciaobru Posts: 1, Reputation: 1
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    #1

    Nov 25, 2008, 09:03 PM
    IRS Tax on end of the year company bonus
    What is the percentage that the IRS tax on a end of the year company bonus?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Nov 26, 2008, 12:01 AM

    The bonus is taxed as your ordinary income, there is no special tax rate for bonus.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Nov 26, 2008, 07:44 AM
    However, the withholding rate will be either 25% or 30%, depending on the size of the bonus.
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