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    letshegobohlolo's Avatar
    letshegobohlolo Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Dec 11, 2007, 06:11 AM
    Bonus Tax
    I've been working for this insurance company for the past for months and I will getting by annual bonus. I just need to find out that will both my bonus and salary be taxed?
    tickle's Avatar
    tickle Posts: 23,796, Reputation: 2674
    Expert
    		  
    #2

    Dec 11, 2007, 06:29 AM
    Bonus is considered income, so yes it will be taxed same as salary.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Dec 11, 2007, 10:51 AM
    It will be taxed the same as your salary, but it is likely that MORE money will be withheld, because lump sum payments (like bonuses) are subject to a 30% withholding.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Dec 11, 2007, 11:24 AM
    The bonus will be added in your income on the W2.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Dec 11, 2007, 01:30 PM
    MukatA again adds something that I forgot!

    Keep up the good work!
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