Thread: Bonus Money?
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Old 12-29-2013 | 06:03 AM
  #39  
EMBFlyer
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Joined: Oct 2005
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From: MD-11 FO
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Originally Posted by flybywire44
Taxes are taken out of bonus checks at a higher rate, but in the end you only owe a percentage based on your income bracket. Think of the difference between regular tax rates and bonus taxes as a short term govt loan. —The govt would benefit from you not dedicating time/money to maximizing your return.

For example, if you're in the 25% income bracket ($35,351 - $85,650) you only owe 25% + any state/local taxes on that bonus money. Maximize your deductions to lower your taxable income and you will get some of that bonus money back.

Since you had to ask, I'm going to go ahead and encourage you to learn how to calculate your own per diem deductions and not pay someone to do that for you—it's a lot easier to calculate CONUS/OCONUS deductions than many think!!!
Oh, I already do that. I itemize, do the per diem stuff, do everything I can to maximize deductions. My previous company never paid ANYTHING taxed as a bonus. I just wasn't sure if there was anything special I had to do.
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