Originally Posted by
Two Kings
So much misinformation here.
Yeah, you're correct. The 25% method is the percentage method and probably will be used over an aggregate method. But like you said, it doesnt matter because it all equals out in the end. So a 20k bonus check will still ultimately be taxed at your normal earnings rate when you file for the year.
If I knew my 20,000 was to be taxed higher initially, I would change my withholding on my W4 to allow me to see some of that extra tax dollars be returned back into my paychecks, rather than just wait for a larger refund, on your interest free loan you gave the government.