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I received a bonus for the first time this year that was taxed at a higher amount than my regular salary, should i be getting a noticeably larger tax return?
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I received a bonus for the first time this year that was taxed at a higher amount than my regular salary, should i be getting a noticeably larger tax return?
That depends on what you mean by noticeable. If you are in the 15% tax bracket, the withholding on the bonus (25%) would create a 10% difference. How big was the bonus?
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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I received a bonus for the first time this year that was taxed at a higher amount than my regular salary, should i be getting a noticeably larger tax return?
But I'll bet the comparison is on the total % of paycheck w/h to gross pay vs the same for the bonus. So it wouldn't be marginal to 25% it would be average to 25%
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I received a bonus for the first time this year that was taxed at a higher amount than my regular salary, should i be getting a noticeably larger tax return?
yes the bonus was taxed roughly 10% higher than my regular salary
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I received a bonus for the first time this year that was taxed at a higher amount than my regular salary, should i be getting a noticeably larger tax return?
the bonus was around $17k
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I received a bonus for the first time this year that was taxed at a higher amount than my regular salary, should i be getting a noticeably larger tax return?
Basically, it could go either way. Depending on how the bonus withholding percent compares to your marginal rate.
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I received a bonus for the first time this year that was taxed at a higher amount than my regular salary, should i be getting a noticeably larger tax return?
POSSIBLY.
Very often employers will tax a bonus at a straight (higher) tax rate. This happens for different reasons, it might be easier for the payroll department, it allows for all the employees that get the same bonuses to see the same dollar amount on their checks, and it helps ensure that the employee won't be surprised by a larger-than-expected tax bill.
It is very difficult to determine if this will result in a higher refund for you since there are so many other factors to consider, but if you had a higher percentage of tax withheld because of this bonus, and you end up in a lower tax bracket when you file your taxes, chances are you will receive a larger refund.
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