Quote:
Originally Posted by fishbones
Dodd's notion is in the "earliest of thinking"? Doesn't seem like there's much thought to it at all. You're right, Jimmy. Bonuses are taxed. They're taxed at a much higher rate than normal pay because the tax is progressive. It's good to know that Dodd has a career in politics because he wouldn't get by very well in the real world.
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A bonus is taxed just like income when you file your return, it's the
withholding that's usually taxed at a higher rate as the calculations typically assume you're going to be earning that extra money every period...or it's a flat rate that's often higher than your regular tax rate.
Generally speaking, most people don't really care unless you're trying to defer tax payments or you really need the cash.
-spence
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