Friday, July 15, 2011

Bonus check tax question?

No. Taxes were withheld at 51%. That has absolutely nothing to do with the rate at which the income is taxed. The two issues are completely and totally unrelated. The withholding is the amount that is temporarily taken out of your check (and must be accurately shown on the W-2). The tax is the amount that the government actually keeps after you file your tax return.

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