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Old 04-19-2020 | 10:46 PM
  #8  
Tpinks
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Joined: Aug 2014
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Two corrections needed in this thread.

Bonuses ARE NOT taxed at a higher rate, they are taxed at the same rate at which your normal income is. Whatever bracket you fall into is what it’s taxed at, though they could possibly bump you into the next bracket. For this reason, bonuses are WITHHELD at a higher rate. So while you lose money upfront with the bonus when they are initially paid, you gain a lot of it back come tax season the following year.

Per Diem IS taxed while on day trips.
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