Bonus Money

[Meljane20]

How is bonus money determined on the W4?

If I am paid salary every 2 weeks, but I received a bonus check for 2021 in April of 2022, is that calculated on the W4?

Or is that money I need to put aside to pay in at the end of the year?

How do I determine how much in taxes I need to put aside for bonus money?

[John-H2021]

Hello Meljane 20,

When you get a bonus the employer usually with holds 22% for federal taxes. Here is an article that explains the with holding in detail.

If you r effective tax rate is higher then 22% then you would need to put additional money aside to pay at the end of the year or send in an estimated payment.

https://turbotax.intuit.com/tax-tips/jobs-and-career/how-bonuses-are-taxed/L7UjtAZbh

Thanks