Originally Posted by
tom11011
People are kind of clueless about taxes. Sure, more money may be withheld out of your bonus, maybe as high as 35% but it doesn't matter, it all comes on in the wash at the end of the year refund time you just get a bigger refund.
Of course there is the possibility a bonus can push you into a higher income tax bracket because your income is higher but that's like saying I don't want to be a millionaire because I would have to pay more taxes.
That bonus won't push you into a higher tax bracket for your entire earnings though. If you're making $40k a year and that's including the bonus, you'll probably get taxed 15% on $32k and 20% on the remainining $8k just to give an example. It's not like you enter into a whole new tax bracket from the first dollar you make because you're now getting a bonus.