Hi,
Last year (2020), I got a supplemental income of $2000 by working on 2 holidays (Dec 24th and 25th). But that income is included in the Box 1 of my W-2 form. How can I report is separately so that I have to pay less tax on this supplemental income than my current bracket. As the supplemental income is taxed at a flat rate of 22 % which is less than my current tax bracket.
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you misunderstand about supplemental income. you pay taxes on it at whatever tax brackets it falls into. it's the employer that can withhold at a flat 22% rate. report the w-2 as is.
Mike,
1)
My employer withheld taxes on the supplemental income at a higher rate than my current bracket. Does it mean that they used the what is called "The aggregate method"?
2)
In case if they had withheld the taxes at 22 % and my tax bracket was higher, then did I need to pay the rest of the taxes while filing the tax returns ?
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