Bonus Money?
12-28-2013 | 03:07 PM
#36
Gets Weekends Off
Joined: Sep 2005
Posts: 120
Likes: 0
From: AB F/O
12-29-2013 | 02:31 AM
#38
Flies With The Hat On
Joined: Aug 2006
Posts: 1,339
Likes: 0
From: Right of the Left Seat
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!!!
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!!!
12-29-2013 | 06:03 AM
#39
Gets Weekends Off
Joined: Oct 2005
Posts: 2,513
Likes: 66
From: MD-11 FO
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!!!
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!!!
01-06-2014 | 10:02 AM
#40
Gets Weekends Off
Joined: Sep 2012
Posts: 172
Likes: 0
College fund for my four-year old boy. Going to straight to Fidelity, as I decided against a 429 plan.
He can use it for school, or let it ride and add to it for a nice retirement.
Can you imagine 30K in a retirement fund at 4 years old??!!
I don't want him to be dependent upon anything or anyone in his future like I am.
He can use it for school, or let it ride and add to it for a nice retirement.
Can you imagine 30K in a retirement fund at 4 years old??!!
I don't want him to be dependent upon anything or anyone in his future like I am.
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