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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Bonus question
With all this GOldman Sachs talk, it got me thinking. I know bonuses are normally taxed at the 45% rate.
I wanted to bump up my exemptions for my bonus check so that I get the most money and the least amount of taxes taken out. Can I do this or does it HAVE to be taxed at the 45% rate?
TIA
Message edited 12/14/2006 2:43:12 PM.
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Posted 12/14/06 2:42 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Bonus question
good question
I know ours are taxed that way- but I wonder b/c I claim married if I will get taxed less
wait- aren't you an accountant?
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| Posted 12/14/06 2:45 PM |
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veeandrich
LIF Infant
Member since 5/06 325 total posts
Name:
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Re: Bonus question
yep! my bonus was taxed at 40 % since I don't pay city tax. I'm not sure about the exemptions , check with your Payroll dept.
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| Posted 12/14/06 2:45 PM |
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Phyl
R.I.P. Sweet Mia ♥
Member since 5/06 28918 total posts
Name:
The Mystical Azzhorse! ™
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Re: Bonus question
We are in Calif...don't know if it's different but we just asked that the least amount of taxes be withheld .I don't even think 15% total was taken out in taxes from my bonus check.
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| Posted 12/14/06 2:45 PM |
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nixy
LIF Adult
Member since 9/06 1575 total posts
Name:
K
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Re: Bonus question
If you get a seperate check, I think they tax it at a flat rate, regardless of what you exepmtions are.
If they lump it in with your regular salary you might be able to change your exemptions.
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| Posted 12/14/06 2:46 PM |
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CrankyPants
I'm cranky
Member since 7/06 18178 total posts
Name:
Mama Cranky
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Re: Bonus question
Posted by stephanief
With all this GOldman Sachs talk, it got me thinking. I know bonuses are normally taxed at the 45% rate.
I wanted to bump up my exemptions for my bonus check so that I get the most money and the least amount of taxes taken out. Can I do this or does it HAVE to be taxed at the 45% rate?
TIA
I think bonuses are always taxed at that rate regardless of deductions-but I could be wrong.
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| Posted 12/14/06 2:46 PM |
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Lisa
I'm a PANK!!!
Member since 5/05 22334 total posts
Name:
Professional Aunts No Kids
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Re: Bonus question
You will have to pay taxes on this money eventually...either now...or when you file your tax return.
Do you have 401K plan? I know for us we can have up to 20% taken out pre-taxed...which makes the taxable amount less...you dont get the cash now but in reality you are getting more because when you retired that money will be all yours.
I hope that makes sense! 
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| Posted 12/14/06 2:47 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Bonus question
Posted by Beth1210
good question
I know ours are taxed that way- but I wonder b/c I claim married if I will get taxed less
wait- aren't you an accountant?
LOL, I am a cpa but I do not do taxes, I do audits 
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| Posted 12/14/06 2:48 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Bonus question
LOL, I am a cpa but I do not do taxes, I do audits
 that explains it
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| Posted 12/14/06 2:49 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Bonus question
Posted by Lisa
You will have to pay taxes on this money eventually...either now...or when you file your tax return.
Do you have 401K plan? I know for us we can have up to 20% taken out pre-taxed...which makes the taxable amount less...you dont get the cash now but in reality you are getting more because when you retired that money will be all yours.
I hope that makes sense!
I would rather have the money now and worry about it when I file at the end of the year. I will ask payroll
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| Posted 12/14/06 2:49 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Bonus question
Posted by Beth1210
LOL, I am a cpa but I do not do taxes, I do audits
that explains it
OMG, you were probably thinking "this girl is stupid, she should know this"
even when I do taxes (for myself or friends) I use a computer program
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| Posted 12/14/06 2:50 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Bonus question
You have to contact your payroll department and ask to do a seperate election for your bonus. I know that ADP payroll services used to have a form to fill out if you wanted your bonus taxed differently.
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| Posted 12/14/06 2:50 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Bonus question
Posted by lululu
You have to contact your payroll department and ask to do a seperate election for your bonus. I know that ADP payroll services used to have a form to fill out if you wanted your bonus taxed differently.
Thanks, I will do that.
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| Posted 12/14/06 2:51 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Bonus question
Posted by stephanief
Posted by Beth1210
LOL, I am a cpa but I do not do taxes, I do audits
that explains it
OMG, you were probably thinking "this girl is stupid, she should know this"
even when I do taxes (for myself or friends) I use a computer program
I was thinking you should know more then the rest of us! and maybe you had prego brain- I got "bride brain" so I am sure prego brain is worse!
but never that you were stupid! 
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| Posted 12/14/06 2:52 PM |
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MrsMerlot
Unconditional Love
Member since 4/06 6005 total posts
Name:
Chrissy
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Re: Bonus question
As far as I know - flat tax rate - however, like others have posted - doesn't hurt checking w/payrool.
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| Posted 12/14/06 2:53 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Bonus question
Posted by Beth1210
Posted by stephanief
Posted by Beth1210
LOL, I am a cpa but I do not do taxes, I do audits
that explains it
OMG, you were probably thinking "this girl is stupid, she should know this"
even when I do taxes (for myself or friends) I use a computer program
I was thinking you should know more then the rest of us! and maybe you had prego brain- I got "bride brain" so I am sure prego brain is worse!
but never that you were stupid!
i do have preggo brain BTW
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| Posted 12/14/06 2:53 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Bonus question
i do have preggo brain BTW
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| Posted 12/14/06 2:57 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Bonus question
Posted by Beth1210
i do have preggo brain BTW
BTW, happy belated one year anniversary, I CANNOT believe it has been a year for you already   
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| Posted 12/14/06 3:01 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Bonus question
BTW, happy belated one year anniversary, I CANNOT believe it has been a year for you already
thanks- neither can I
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| Posted 12/14/06 3:03 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Bonus question
I Just called payroll and they said 25% is automatically deducted for federal taxes, that is not TOO bad
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| Posted 12/14/06 3:16 PM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: Bonus question
Usually, paychecks have deductions removed as though you get that same amount every week (or two weeks, if that's how you get paid.) When you get your bonus, the IRS looks at that paycheck and says "Wow, if that's their weekly paycheck, they are making a lot of money, so we'll have to tax them at the highest rate." They don't look at your yearly salary for the taxes, just that individual check.
It all evens out when you file. It just sucks that they take that much out right around the holidays, usually.
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| Posted 12/14/06 4:33 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Bonus question
stupid Q but.... don't you get some of that $ back when you reconcile your 2006 taxes? 
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| Posted 12/14/06 4:34 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Bonus question
Posted by SweetestOfPeas
stupid Q but.... don't you get some of that $ back when you reconcile your 2006 taxes?
Yes - you do.
Message edited 12/14/2006 4:42:43 PM.
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| Posted 12/14/06 4:42 PM |
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