I hate the way the gov't taxes my bonus!
Joined: Oct 2000
Posts: 17,288
Likes: 39
From: Nashville
I am pretty sure that your bonus checks are required to have 25% (i think) federal taxes taken out. Doesn't matter if you claim 99 exemptions on your w4, the 25% is required.
What you do after that on your regular paychecks is up to you. You can make yourself "married 3" to reduce your weekly withholdings.
Do a quick 2005 estimate of your total income and total taxes and see how much you need withheld. I don't mind the 25% withholding on mine since I have to pay estimated taxes anyway......
What you do after that on your regular paychecks is up to you. You can make yourself "married 3" to reduce your weekly withholdings.
Do a quick 2005 estimate of your total income and total taxes and see how much you need withheld. I don't mind the 25% withholding on mine since I have to pay estimated taxes anyway......
Registered User
Joined: May 2002
Posts: 3,159
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From: YANKEE WORLD
Originally Posted by tritium_pie' date='Feb 4 2005, 10:16 AM
well, I just spoke to my boss, and he said if you're a single guy with 9 or more allowances, the IRS automatically audits you. so that's a no-no.
Joined: Jul 2002
Posts: 19,257
Likes: 19
From: San Diego, CA
Originally Posted by tritium_pie' date='Feb 4 2005, 10:09 AM
what if it's a $50K bonus, but I'm only paid minimum wage the rest of the year?
see??? life sucks then doesn't it? ok then.
actually... your 2% APR is not correct, because this would be used to pay down debts, which cost me a higher APR. and also, INGdirect's MMA is currently paying a nice 2.35%
see??? life sucks then doesn't it? ok then.
actually... your 2% APR is not correct, because this would be used to pay down debts, which cost me a higher APR. and also, INGdirect's MMA is currently paying a nice 2.35%
Well do the maths, if you feel the amount of money at stakes justifies it, then adjust your W4 accordingly.
Thread Starter
Registered User
Joined: May 2003
Posts: 4,543
Likes: 0
From: Vegas baby!!
^ I was being facetious about my income. (but I do have some short term debts, thanks to a recent cruise)
it's just the whole falsifying a gov't document, perjury when I click the "I agree that this is accurate" button, etc.
it's just the whole falsifying a gov't document, perjury when I click the "I agree that this is accurate" button, etc.
Joined: Jul 2002
Posts: 19,257
Likes: 19
From: San Diego, CA
I don't necessarily think entering an incorrect figure in your W4 would be considered falsifying govt doc. It's just an estimate anyway, and if you make a mistake in your estimate, you're ultimately still going to pay for it (either in the form of penalties, if you withold too little, or in the form of a free loan to Uncle Sam, if you withold too much).
Registered User
Joined: Sep 2001
Posts: 565
Likes: 1
From: SF Bay Area
It has always confused me when people say bonus checks get taxed 50%. I do my own taxes and I've never seen a "bonus" tax table.
Here is good info for you:
http://www.thestreet.com/funds/taxforum/990258.html
It suggests adjusting your W-4 to match your expected income. I think this should be standard practise for everyone.
Here is good info for you:
http://www.thestreet.com/funds/taxforum/990258.html
It suggests adjusting your W-4 to match your expected income. I think this should be standard practise for everyone.
