Is bonus money taxed different than regular income? I got a $5,000 bonus this year and did not pay taxes on the same -- is this in a different tax category than normal?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
brookelinn86
New Member

Is bonus money taxed different than regular income? I got a $5,000 bonus this year and did not pay taxes on the same -- is this in a different tax category than normal?

 
1 Reply
re2boys
Level 9

Is bonus money taxed different than regular income? I got a $5,000 bonus this year and did not pay taxes on the same -- is this in a different tax category than normal?

No, the bonus is added to your other income and is taxed just as your other income is taxed....on a graduated scale.

But employers are allowed several method in determining the appropriate withholding from a bonus.  See this article for details:

http://blog.turbotax.intuit.com/income-and-investments/bonus-time-how-bonuses-are-taxed-and-treated-...

Dynamic AdsDynamic Ads
v
Privacy Settings