I changed jobs this year. My annual base salary did not change and everything else remains the same. The only change is that I received my old company's bonus (~$20k) paid out in 2020 but my new companies bonus (estimated about the same) should be paid out in December. My overall tax rate (Fed, Medicare, State and SS) went from about 21.33% to 30% using the tax tool. Last year (and every year prior) I got a tax refund of about $1500. Why such the change?
Thanks for the question! Tax rates are based on your total income, and if you are receiving an additional $20,000 bonus, this will increase your Adjusted Gross Income as well as your taxable income. The following article discusses tax brackets for both 2020 and 2021:
As for the amount of any refund or balance due, remember that the tax return is a reconciliation of the income received and the taxes paid throughout the year.
The following article discusses many reasons for changes to the outcome of your tax return and options for possibly increasing your refund. Be sure to check out some of the additional links at the bottom of the article.
I hope this answers your question. If you need more information simply reply here.
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