Amazon sign on bonus

May 17, 2018 18 Comments

What tax rate will I have to pay on the Amazon sign on bonus?

Location - Seattle

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TOP 18 Comments
  • Microsoft / Design 2much
    100%
    May 17, 2018 1
  • Amazon shammer
    It's regular income, you'll pay at your marginal tax rate + social etc. No state income tax but that's the same for salary
    May 17, 2018 8
    • Amazon / Eng Foods
      This
      May 17, 2018
    • OP
      So my year end bonuses at past companies are usually taxed at like 40%. Why is the amzn sign on bonus different?
      May 17, 2018
    • Amazon shammer
      They were not taxed at 40% probably. Your company witheld the max possible just in case. You were probably getting fat tax refunds
      May 17, 2018
    • Amazon Bot'sBot
      Damn, you are in a 40% tax bracket and don't understand taxes!? It's just regular income, depends on how much you make in the year. There is no set percentage.
      May 17, 2018
    • Amazon shammer
      He's not. I've seen smaller companies withold 40% for bonuses, like their payroll and bonus systems are not connected and they don't know your marginal tax rate
      May 17, 2018
    • Qualcomm Rbit
      Cash Bonus is withheld @22% for federal taxes. You maybe referring to stocks.
      May 17, 2018
    • Amazon / Eng Foods
      Yeah so OP may just be confused between company withholding (which may be kinda dumb) and actual taxes. The government expects to be paid taxes exactly as if your bonus is normal income (same brackets, etc). They also expect withholding (there are penalties if you owe too much on tax day)
      May 18, 2018
    • Amazon Karen Ops
      I paid state tax. Was a big chunk
      May 18, 2018
  • WalmartLabs pRoQ68
    It’s regular income. Bonus, RSUs at vesting are all included in your regular income (w2). The company may withhold more but it will all be adjusted when you do your taxes.
    May 17, 2018 0
  • Microsoft / Eng floating.
    About 40 percent
    May 17, 2018 0
  • Qualcomm PickleRick
    22% federal
    May 17, 2018 3
    • OP
      That's it?
      May 17, 2018
    • Amazon / Eng Foods
      (Probably) no. It’s taxed as regular income
      May 17, 2018
    • Qualcomm Rbit
      Let me clarify; 22% is withheld from your paycheck. Your average tax rate depends. This will be calculated at the time of tax filing is based on overall income, marital status, deductions, dependents etc. e.g. For an income of 300k, married filing jointly, average tax will be ~22%. YMMV
      May 17, 2018
  • LinkedIn jJwG34
    1 kidney
    May 17, 2018 0

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