Originally Posted by
cf105
great move in the right direction even if bonuses are taxed much higher then normal pay. Too bad the first 3 years FO pay rate is still so crappy.
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Bonuses are taxed the same as any other earned income.
The withholding may be more, but you will get that back when you file your taxes for the year. If you want less withheld, put allowances on the W4 higher throughout the whole year.