Bonus tax

[Sean Grilley]

How much of my 35% bonus tax should I expect to get back if I am married filing jointly in the 12% bracket?

[Loretta P]

You can use the TurboTax TaxCaster to estimate your tax refund or amount owed to the IRS.

TaxCaster 

[Sean Grilley]

thats great but i was really just wanting to know what percent of the 35% was federal witholding. I am not sure where to input bonuses as far as income on the tax caster becuase it doesnt have a section for it. if you need more details just tell me that. 

[Loretta P · Accepted solution]

The entire 35% should be federal withholding.

[Sean Grilley]

thanks

[Loretta P]

You're welcome!

[Opus 17]

I believe the statutory withholding on a lump sum bonus is in the range of 24%, not 35%.  A work bonus is also subject to social security and medicare tax withholding (which is not refunded) and state withholding (which depends on your state.  How did you calculate 35%, was that federal only, or federal plus state plus social security and medicare?

For example, suppose you live in Virginia (5% income tax) and your bonus was taxed at 24% federal, 5% state, and 7.65% social security and medicare.  The social security and medicare is gone forever, and the 5% state withholding matches the 5% state tax so you break even, and the 24% federal withholding is double your marginal federal rate.  Assuming the bonus doesn't push you into a higher tax bracket, you would get half the federal withholding back as part of your tax refund.