How Bonuses are Taxed Calculator

Tax Planning

The end of the year is quickly approaching and hopefully you’re expecting a bonus for all of your hard work this year.  But just how much taxes are withheld from your bonus?

Check out our bonus calculator that answers one of our most frequently asked questions and get an estimate of how much taxes will be withheld from your end of year bonus.

Comments (23) Leave your comment

  1. Hello,
    I earn $250K annually (w2) and received a $80,000 contract signing bonus. I am told my net bonus will only be $42,266 after taxes. This seems wrong to me.
    I live in New York State.

  2. Hello!
    I am a school teacher at a school that is closing. The school will be paying out my entire summer pay in one check. I am concerned that the tax withholding will eat into the funds that I need to sustain my household. I am in the 25% tax bracket in my pay. The lump payment will be for an entire month’s pay (two payments). What would be a “safe” amount to increase my deductions to for this payment??

  3. Hi, I will receive a relocation bonus $20K from future employer. I have an option to get that bonus now (currently live in CA) or later (when I will move to WA) – the employer is in WA. Does it make sense to wait till I move to WA before accepting the bonus (in terms of paying less state tax)? For purpose of this calculation we can use annual base salary at $160K+ (excluding this bonus, etc.)… Please advice! Thanks in advance

  4. Please this is my first time am filing, i only want to put my Wages and Federal Tax W/H…. I don’t want to include Soc Sec Wages and Medicare Tax W/H… Hope it won’t stop my payment..

  5. I purchased a travel trailer in Delaware with a bank loan. I have paid my Pennsylvania state sales tax for the purchase. I have been told that if it has a bathroom etc it is eligible for a tax deduction is this true ?

    1. A travel trailer with a kitchen and a bathroom will qualify as a second home, and the loan interest would be deductible as mortgage interest. If your loan company does not report the interest on form 1098, TurboTax has a box on the screen titled “Tell Us More About Your Loan from …”. Check the box “I did not receiva a 1098. Enter the amount of the interest you paid on the next screen, then Yes on the Was This a Seller-Financed Loan? You can then enter the bank’s information on the next screen. You may need to request the bank’s Federal ID number from the bank if it is not on any of the paperwork you have from the bank.

      Mary Ellen

  6. I have a 17 yr old daughter who father has managing conservitorship of however she has lived in my home for 2 yrs now. Which i can prove with school records and medicaid. Her father hasnt lived in our city in over a yr n isnt supporting her finacally at all. He claims he can claim her on his 2013 taxes. There is nothing in our court documents stating anything regarding taxes. Can i claim her this yr? Or does he have to.?

    1. You should have all rights to claim her. she lives with you. do your taxes before him and once he does his taxes, he wont be able to claim her cause you already did. good luck

  7. I am 63 and thinking of retiring next year and have a small annuity ($20,000) which has been tax deferred. How will it affect my taxes if I withdraw it all to pay off a couple of bills so I will be debt free?

    1. Hi John,
      You will be taxed on the amount withdrawn and it will be added to any other income. If your contributions to the plan were included in your gross income before, then part of the distributions may be excluded from income. Here is more information on the taxation of pensions and annuities

      http://www.irs.gov/taxtopics/tc411.html

      Thank you,
      Lisa Greene-Lewis

  8. We received a lease bonus check from Gas and Oil company of 60 thousand, does this just get added to our yearly income? How much tax would I expect to pay on $60.000, when our family only makes 30,000 a year with one dependent under age of 17, Thank you.

    1. Hi Susan,
      Your lease bonus check would be added to your total yearly income. You should receive a 1099-misc. I don’t know all of your tax deductions to determine your taxable income, but you would be taxed at a higher tax rate based on both your regular income and the lease bonus income. Please see this article for 2013 tax rates

      https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/2013-Federal-Tax-Rate-Schedules/INF12044.html

      Thank you,
      Lisa Greene-Lewis

  9. Would love to see a calculator for the opposite. Ie., you received regular monthly or quarterly bonuses. How much will you get back if your employer uses the aggregate method and your tax rate for each bonus period was significantly higher than your regular tax rate?

  10. Way to go for perpetuating the myth that bonuses are taxed differently than regular income. The word you are looking for is “withheld,” not taxed.

    1. Great point Alison. Your Tax is the same with either method. The difference is just how much you owe or get in a refund at the end of the year. The Aggregate method is the best way for you to end up owing a small amount. This is the ideal situation for most people.

      It really is bad advice to suggest that the flat 25% is somehow good for people or might save them something.

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