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View Full Version : Signing Bonus 1099-Misc?


PotatoChip
02-21-2017, 06:37 PM
Question deleted.


squib
02-21-2017, 06:47 PM
Hope ya didn't spend it all in one place!

HighFlight
02-21-2017, 06:55 PM
It doesn't matter how "all different regionals" are handling the bonus, only how yours handles it, for you.

But since you asked, EDV includes our bonuses into our pay, so it's all covered on the W-2.

Bonuses are typically withheld at 25% at the federal level. The rest depends on your state and ALPA and other things held from your pay.

37.6% sounds a tad high, but it's hard to say, only you know your own tax situation.

How have all the different regionals distributed their signing bonuses? Are pilots getting 1099-Misc's, or are they seeing this reported other ways?
I received a 1099-Misc for mine, and from $15,000 I was promptly taxed $5,640....


PotatoChip
02-21-2017, 07:02 PM
It doesn't matter how "all different regionals" are handling the bonus, only how yours handles it, for you.


Wow. Thanks for enlightening me. I asked because I want to know, I don't need the lesson. :rolleyes:

MidLife
02-21-2017, 07:03 PM
How have all the different regionals distributed their signing bonuses? Are pilots getting 1099-Misc's, or are they seeing this reported other ways?
I received a 1099-Misc for mine, and from $15,000 I was promptly taxed $5,640....
Tax was withheld. The actual tax depends on your situation. You may get some returned when you file your tax RETURN...

squib
02-21-2017, 07:17 PM
Tax was withheld. The actual tax depends on your situation. You may get some returned when you file your tax RETURN...

Unfortunately you will some day find out that you don't always get a "RETURN."

Pedro4President
02-21-2017, 07:32 PM
Unfortunately you will some day find out that you don't always get a "RETURN."

Yeah I shorted this past year to the tune of about 1k. There goes the profit sharing bonus.

HighFlight
02-21-2017, 08:13 PM
That's pretty damn funny. You have no idea to whom you are talking to about taxes. For all you know, he's a millionaire and pays more taxes per year than you make.

Unfortunately you will some day find out that you don't always get a "RETURN."

HighFlight
02-21-2017, 08:14 PM
I answered your question. Sorry you don't like the answer. But it was accurate in every respect. If you didn't need the lesson, then you would have understood that you were not "promptly taxed $5,640".

Wow. Thanks for enlightening me. I asked because I want to know, I don't need the lesson. :rolleyes:

Lvlng4Spd
02-22-2017, 03:37 AM
With the 1099 you are adding un-taxed income at the end of the year to your total income. The taxes on it have to come out of somewhere, and it does depend on your situation. Did you claim a lot of exemptions on your W-4?

My airline adds the bonuses into our pay, from everything I've seen, and are taxed right away. In that situation, paying more tax in the end is usually a product of what you claim, deduct, your bracket, etc..

Mil2Cil
02-22-2017, 06:40 AM
Has anyone had to pay back the bonus? How does that work after the taxes have been taken out?

Do you have to go into the hole to pay back the full thing and wait for the IRS to pay pack after a corrected W-2? Thanks!

No Lies
02-22-2017, 06:56 AM
With the 1099 you are adding un-taxed income at the end of the year to your total income. The taxes on it have to come out of somewhere, and it does depend on your situation. Did you claim a lot of exemptions on your W-4?

My airline adds the bonuses into our pay, from everything I've seen, and are taxed right away. In that situation, paying more tax in the end is usually a product of what you claim, deduct, your bracket, etc..

There are no exemptions on the W4 for his check for the 15,000. He got the entire 15,000. The check is sent out prior to hire. He will now have to pay his own social security and other fees on his taxes this year as well.

No Lies
02-22-2017, 06:57 AM
Question deleted.

You should have put this under C5 as we get paid different on our bonus than most other airlines.

Lvlng4Spd
02-22-2017, 07:13 AM
There are no exemptions on the W4 for his check for the 15,000. He got the entire 15,000. The check is sent out prior to hire. He will now have to pay his own social security and other fees on his taxes this year as well.

True but if he took extra exemptions on regular pay that could lead to the higher percentage he is paying. The IRS goes whoa...you made x dollars but didn't pay in enough taxes, soc sec. etc.. for your bracket so now pay up.

I believe C5 is taking the lazy way out on this, as they should issue the checks as part of regular income or let them know what to expect when a 1099 is involved. A new hire could then do some math and withhold more on each check via the W-4 to offset it. The 10 employee flight school I did most of my instruction at was kind enough to at least counsel us on how 1099 works. This is where a bonus can become buyer (or taker) beware...

HighFlight
02-22-2017, 07:30 AM
Good posts, Living4Speed. And while many may not view it as such, it is better to owe the IRS than have them owning you, from a financial health standpoint. I am always amazed at the people who are so excited to "be getting $10,000 back from the government" at tax time. They just don't get it.

PotatoChip
02-22-2017, 08:27 AM
I claim about 10 exemptions for the sole reason that I do not want a refund. A refund is an interest free loan to the government not adjusted for inflation. I would much rather pay $1000 at year's end than get a $5000 "refund". It's not a refund, you are losing money.
I sinply wanted to know if other airline were including this income in employees W-2's. I knew mine was a 1099, and I expected to be taxed appropriately $3,500. It was more than I expected. Thankfully, I'm not so stupid as to have spent it all.
I do not like the way C5 handles it. I'm not sure why they do it this way, other than it must somehow help their bottom line, likely in how they claim their taxes.
I just wanted to know if all other airlines were doing the same. I was not looking for unsolicited tax advice.

Mil2Cil
02-22-2017, 09:31 AM
True but if he took extra exemptions on regular pay that could lead to the higher percentage he is paying. The IRS goes whoa...you made x dollars but didn't pay in enough taxes, soc sec. etc.. for your bracket so now pay up.

I believe C5 is taking the lazy way out on this, as they should issue the checks as part of regular income or let them know what to expect when a 1099 is involved. A new hire could then do some math and withhold more on each check via the W-4 to offset it. The 10 employee flight school I did most of my instruction at was kind enough to at least counsel us on how 1099 works. This is where a bonus can become buyer (or taker) beware...

I just got my first of 2 bonus checks from PDT and it was in my paycheck with the rest of my wages and it was taxed as such. Any idea how it's paid back?

squib
02-22-2017, 11:01 AM
That's pretty damn funny. You have no idea to whom you are talking to about taxes. For all you know, he's a millionaire and pays more taxes per year than you make.

Possible but since he emphasized RETURN it's doubtful. Maybe I'm a millionaire too. But since we are all in the regional airline pilot forums that's also doubtful. :)

Lvlng4Spd
02-22-2017, 11:58 AM
I claim about 10 exemptions for the sole reason that I do not want a refund. A refund is an interest free loan to the government not adjusted for inflation. I would much rather pay $1000 at year's end than get a $5000 "refund". It's not a refund, you are losing money.
I sinply wanted to know if other airline were including this income in employees W-2's. I knew mine was a 1099, and I expected to be taxed appropriately $3,500. It was more than I expected. Thankfully, I'm not so stupid as to have spent it all.
I do not like the way C5 handles it. I'm not sure why they do it this way, other than it must somehow help their bottom line, likely in how they claim their taxes.
I just wanted to know if all other airlines were doing the same. I was not looking for unsolicited tax advice.

10 exemptions...that is why you were taxed more than expected. You never paid in enough taxes through regular wages to cover that additional $15,000 in the first place. Not entirely bad as you stated, but that is where the unexpected difference comes from. You were very wise to see the lights of the tax train coming, and yes C5 is saving quite a bit in doing it this way. -Jackson Hewitt :)

Lvlng4Spd
02-22-2017, 11:59 AM
I just got my first of 2 bonus checks from PDT and it was in my paycheck with the rest of my wages and it was taxed as such. Any idea how it's paid back?

Are you speaking of paying it back, if say you leave early?

Name User
02-22-2017, 12:56 PM
I claim about 10 exemptions for the sole reason that I do not want a refund. A refund is an interest free loan to the government not adjusted for inflation. I would much rather pay $1000 at year's end than get a $5000 "refund". It's not a refund, you are losing money.
I sinply wanted to know if other airline were including this income in employees W-2's. I knew mine was a 1099, and I expected to be taxed appropriately $3,500. It was more than I expected. Thankfully, I'm not so stupid as to have spent it all.
I do not like the way C5 handles it. I'm not sure why they do it this way, other than it must somehow help their bottom line, likely in how they claim their taxes.
I just wanted to know if all other airlines were doing the same. I was not looking for unsolicited tax advice.

The problem with that is you'll normally get assessed penalties for not paying enough. It works out to several hundred dollars even with just a few thousand owed. It eclipses the interest earned by many orders of magnitude. I hate owing taxes every year, it's always in the mid 1000's, this year will be even worse. I even set it up to overpay this year and I still owe. We claim 0 and withhold at the higher single rate. For 2017 I'm thinking about even adding in additional payments.

HighFlight
02-22-2017, 05:40 PM
$3500 is not an appropriate amount of withholing for a $15K bonus. Federal alone is $3750. Then you have to take out all the other stuff such as state, ALPA dues, SS, Medicare. The exemptions you claim on your salary doesn't affect a bonus payment.

PotatoChip
02-22-2017, 05:48 PM
$3500 is not an appropriate amount of withholing for a $15K bonus. Federal alone is $3750. Then you have to take out all the other stuff such as state, ALPA dues, SS, Medicare. The exemptions you claim on your salary doesn't affect a bonus payment.

I said taxed. I didn't say ALPA, SS, Medicare....
Are you illiterate or just really difficult? Or you do you just like to purposefully be an a$$.

My guess for FEDERAL TAXES WAS $3500. You're telling it's $3750.
In other words, I WAS PRETTY CLOSE.

PotatoChip
02-22-2017, 05:49 PM
And there is no ALPA dues to probationary new hires.

Mil2Cil
02-24-2017, 07:46 AM
Are you speaking of paying it back, if say you leave early?

Yes, correct. My guess is that I have to pay out of pocket until I get a check from the IRS for my corrected W2.

I still haven't found someone that's paid back their bonus. There has to be guys being pulled up to mainline that don't finish 2 years. I guess once they get the job, they stop trolling these forums.



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