Government tax rate on bonuses
You could also request that the bonus be given to you after the end of the year. This can be advantageous if you think you will make less money next year, and your tax rate could be lower. If the aggregate method is used on your bonus, you will still have less taxes withheld if you are in a lower tax bracket. The new bonus tax rate might eat up the extra money. How is my salary taxed. Your income tax is calculated on your form 1040, 1040EZ, or 1040A. All forms of salaries are categorized, and you are taxed according to the income bracket you fall under. The U.S. government has a progressive income tax system, meaning you are taxed more if you are