Amazon joining bonus
At what rate is sign on bonus taxed? Just like how regular base salary is taxed or different? Thanks
Please for your own sake learn the difference between actual tax and tax withholding.
I understand they are different for sure but dont understand how that relates to my question?
You owe the same amount of tax to the government regardless of base or bonus. However, typically tax from bonuses are withheld at a higher rate by the employer. You make up for this when you file taxes and get your refund.
When you file taxes and enter W2 income, do you see separate entries for base and bonus. If not, why do you think bonus is taxed at a different rate. Please note tax which is deducted from your paycheck i.e. tax withholding is not the same as actual tax that you pay.
I didnt receive paycheck yet to know that due to which the question. Clear now
If you are asking about US, it is taxed the same way as your base
Yes, US. Thx! I thought since its a bonus it gets taxed at 40%. Glad to k now it wont be