Taxes On Your Bonus
Include these in your income:
- Bonuses and awards from your employer reported on your W-2
- Vacation trips you receive for going beyond sales goals
Usually, your employer will withhold taxes from bonuses you receive at the flat rate of 25%. However, if you earned more than $1 million a year, the withholding rate will be 39.6% on the amount over $1 million.
Learn more about combat pay exclusions and get tax answers at H&R Block.
Would winning the lottery affect your taxes? Learn more about how your taxes could change after a Powerball payout with H&R Block.
Learn more about taxable military pay and get tax answers at H&R Block.
What is the alternative minimum tax, and are you eligible for an exemption? Learn more about AMT rates and get tax answers at H&R Block.