What tax rate will I have to pay on the Amazon sign on bonus? Location - Seattle
22% federal
That's it?
(Probably) no. It’s taxed as regular income
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
This
So my year end bonuses at past companies are usually taxed at like 40%. Why is the amzn sign on bonus different?
About 40 percent
1 kidney
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.
Aren’t bonuses considered as supplemental income and taxed at a flat 22% rate?
100%
Ha ha. Good one