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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-...

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