I recived $97,000 in retropay for past 3 yrs in 1 lump sum on 12/30/2016 which was taxed. Is there a way to put this income separate from my W2 earned wages?
My usual tax bracket was 22% and this retro pay was treated like a bonus and was taxed at 25%, but now my total income for the year puts me in a higher tax bracket and I owe taxes.
01454
1 Best answer
MinhT
Expert Alumni
Jun 4, 2019 1:34:51 PM
Unfortunately, you have to report all income received in 2016 on your 2016 tax return and you are taxed on your total income. There is no way to separate your retroactive pay from your normal income.
1 Replies
MinhT
Expert Alumni
Jun 4, 2019 1:34:51 PM
Unfortunately, you have to report all income received in 2016 on your 2016 tax return and you are taxed on your total income. There is no way to separate your retroactive pay from your normal income.