On May 01 2015 03:49 eieio wrote: my tax returns have been pretty siq the past 2 years because apparently signing/yearly bonuses are taxed as though that'll be your monthly salary for the year (which is dumb) meaning that I end up way overpaying in taxes.
fun to get a tax return and have an excuse to buy something silly tho
if it's on your w-2 or part of your regular pay stub then it's billed as part of salary, so it goes to 1040. this way your bonus gets dinged for social security and medicaid and whatever other fees uncle sam wants to withhold you for.
if it's not, then it counts as supplemental income then i beleive it goes on schedule k of the 1040 which is billed differently; think it's better this way as it's billed as a 25% of said income flat under $1 million
it's been part of my regular pay stub historically D:
hopefully that'll change with new job tho
good to know, thanks andy
well it depends on your employer and how their payroll works, some of them count it as one lumpsum payment for salary that month and others calculate it as a separate payment and withholding 25%
from the hundreds of tax returns that i've seen, i'd say over 90% do the former rather than the latter. kinda makes sense to me cause the more they withhold from you the higher the amount of liquidity they have. the thought process is that the employee should be able to get some of that withholding back from the government anyways.
taxes are fucking boring idk how cpas live with themselves
On May 01 2015 03:49 eieio wrote: my tax returns have been pretty siq the past 2 years because apparently signing/yearly bonuses are taxed as though that'll be your monthly salary for the year (which is dumb) meaning that I end up way overpaying in taxes.
fun to get a tax return and have an excuse to buy something silly tho
if it's on your w-2 or part of your regular pay stub then it's billed as part of salary, so it goes to 1040. this way your bonus gets dinged for social security and medicaid and whatever other fees uncle sam wants to withhold you for.
if it's not, then it counts as supplemental income then i beleive it goes on schedule k of the 1040 which is billed differently; think it's better this way as it's billed as a 25% of said income flat under $1 million
it's been part of my regular pay stub historically D:
hopefully that'll change with new job tho
good to know, thanks andy
well it depends on your employer and how their payroll works, some of them count it as one lumpsum payment for salary that month and others calculate it as a separate payment and withholding 25%
from the hundreds of tax returns that i've seen, i'd say over 90% do the former rather than the latter. kinda makes sense to me cause the more they withhold from you the higher the amount of liquidity they have. the thought process is that the employee should be able to get some of that withholding back from the government anyways.
taxes are fucking boring idk how cpas live with themselves
yeah it makes complete sense and since it's on top of your salary it's not like it's too big a deal.
I'm talking primarily to small places now instead of BigCorp so there might be more flexibility idk whatever you're right taxes are fucking boring lol
On May 01 2015 04:12 l3loodraven wrote: "taxes are boring"
I mean we were talking about spending out sweet tax dollars on hats and a PS4. Well I spent part of mine on a PS4 and its been pretty great. Also hats.
EPT
