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.

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