Bonus taxation

Splunk YffI31j
Jun 11 11 Comments

How high are bonuses taxed ?

SF, California

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TOP 11 Comments
  • Symantec / Eng cardi_B
    It's usually around 40%
    Jun 11 1
    • Google / R&D ubjvhhfvh
      Don't confuse withholding with taxation. They may be either at 40% by the company, but are only taxed at the end of the year at your marginal rate.
      Jun 11
  • Intel bulle
    Your marginal tax rate. Practically all bonuses are taxed as regular income
    Jun 11 0
  • Expedia / Eng RslS72
    I think the rate is much higher for non-resident aliens (e.g. student visa), regular tax rate otherwise. Not 100% sure though
    Jun 11 5
    • Expedia / Eng RslS72
      No about which part?
      Jun 12
    • Intel bulle
      Effectively everyone working in the US is a resident for taxation. Check out the link above
      Jun 12
    • Expedia / Eng RslS72
      Not really. Students (F1 Visa, OPT etc) are non resident aliens for tax purposes, SPT doesn't apply there
      Jun 12
    • Expedia / Eng RslS72
      The link you included also talks about that -Exempt Individual
      A student temporarily present in the U.S. under an "F," "J," "M," or "Q" visa, who substantially complies with the requirements of the visa.
      Jun 12
  • Google əๅɓoo⅁
    Bonuses are taxed at a regular income tax rate, same as your paycheck.
    Withholding is calculated differently as pointed out above, but the actual tax is determined when you file the tax return (in W2 salary, RSU and bonus will all be lumped together).
    Jun 11 0
  • Amgen Fin4eng
    22% fed + state. It’s standard tax so if your marginal is much higher you need to overwithold rest of year to make up for a larger bonus.

    The actual tax is marginal when filing taxes, but the actual bonus is what i said
    Jun 11 0