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    hahnke1's Avatar
    hahnke1 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 8, 2007, 07:23 AM
    Sign on bonus taxed 40%
    Sign on bonus 4000.00. File single, 4 deductions. Received 2436.00 after taxes. Does this figure sound acurate? Thought withholding taxes would be a lot less and final bonus amount would be closer to 3000.00.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Oct 8, 2007, 07:47 AM
    The problem here is that this amount was taxed based on your salary period. This is a frequent issue with lump sum payments. Lets say you get paid bi-monthly. The taxes would then be calculated based on a $72K annual salary (24 * $4K), so the withholding might be higher. But rememberthis is just withholding, you may get much of that back when you file your return.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Oct 9, 2007, 07:20 AM
    Agreed!
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