How much tax will be taken from my bonus in NYS?

[VolvoGirl]

Will it be included on your W2 or will you get a separate 1099 for it?  Ask your employer how much they will take out for tax withholding.  Or are you asking in your tax return?   It isn’t taxed separately unless it’s a 1099.   It just adds in like your regular wages.  A large amount may push you into a higher tax bracket.  

[flutetotoot]

It will be on my W-2, and lets call it $30k. I guess I'm looking for the specific %s for fed, state, etc. I seem to be coming up with somewhere between 41%-46%. Harumph!

[Opus 17]

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@flutetotoot wrote:

It will be on my W-2, and lets call it $30k. I guess I'm looking for the specific %s for fed, state, etc. I seem to be coming up with somewhere between 41%-46%. Harumph!

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Remember that if you are over-withheld, you will get it back as part of your tax refund.

The IRS has two rules for bonuses, one is a flat rate (I think 25%) and the other is to treat it as regular income using the regular method.  The problem is that puts you in a higher bracket.  For example, suppose your regular wages are $10,000 per month, or $120K per year.  If you are married and your spouse does not work, you should normally have 12% withholding (up to 22% if your spouse does work).  If the bonus is taxed using the regular method, then that one check will look like your gross income is $40K per month or $480K per year, which puts you temporarily in the 32% bracket (plus 3.9% additional medicare tax, probably). 

Unfortunately, you can ask your employer to use the flat rate method but you can't make them do it that way.

NYS charges between 6% and 6.85% withholding for income under $1 million per year, so your NYS income tax won't be affected by the calculation method, at most it will be 0.85% higher than it should be.  But as before, if you are over-withheld, you will get it back as a tax refund. 

[Opus 17]

Plus normal social security and medicare, of course. 

[xmasbaby0]

The employer may withhold tax at a higher rate, but when you actually prepare your tax return, the amount of income you received will be reconciled with the amount of tax that was withheld.  You will not be taxed at a higher rate for your bonus unless the bonus puts you into a higher tax bracket, in which case the amount in the higher bracket is taxed at a higher rate.