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kaylinrs89
New Member

How are bonus’s taxed? My husband received a $500 Christmas bonus, but it was untaxed. We aren’t sure how much we should hold back for taxes.

 
3 Replies
VolvoGirl
Level 15

How are bonus’s taxed? My husband received a $500 Christmas bonus, but it was untaxed. We aren’t sure how much we should hold back for taxes.

Will it be on his W2 or will they give him a 1099Misc for it?
TomYoung
Level 13

How are bonus’s taxed? My husband received a $500 Christmas bonus, but it was untaxed. We aren’t sure how much we should hold back for taxes.

Bonuses are simply "compensation" exactly like a regular paycheck is "compensation", and taxed no differently.  In and of itself that amount of bonus probably isn't going to materially affect your income tax liability when you get around to preparing your income tax return, but if you want to put something aside for taxes then at a federal level something around 15% - 20% would be a reasonable amount.

Tom Young

SweetieJean
Level 15

How are bonus’s taxed? My husband received a $500 Christmas bonus, but it was untaxed. We aren’t sure how much we should hold back for taxes.

plus state taxes
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