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How are Bonuses Taxed?
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If you received a bonus you may want to understand, “how taxes are withheld from your bonuses when you receive them?”
At the time of receipt of your bonus, federal taxes are typically withheld by your employer at a higher tax rate than your actual tax rate used when you file your taxes. But don’t worry, since your actual tax rate based on your total taxable income for the year could be lower, you may get back some of what was withheld from your bonus as part of your federal tax refund.
At the time of receipt of your bonus, federal taxes are typically withheld by your employer at a higher tax rate than your actual tax rate used when you file your taxes. But don’t worry, since your actual tax rate based on your total taxable income for the year could be lower, you may get back some of what was withheld from your bonus as part of your federal tax refund.
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