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OMG noooo! (lemmy.world)

submitted 2 weeks ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 2 weeks ago (1 children)

I was mildly upset I got $1000 as a bonus instead of a pay income because I thought that bonuses were “taxed at a higher rate” when instead they are simply “withheld at a higher rate” and it all washes out in the end when you pay your taxes at the end of the year.

I do wish I had a way to opt out of any withholding for bonus pay, I'd rather have the money now and risk having to pay a bit when I file taxes vs not having the money and getting a refund a year later when it's worth less.

[–] [email protected] 1 points 2 weeks ago

I do wish I had a way to opt out of any withholding for bonus pay, I’d rather have the money now and risk having to pay a bit when I file taxes vs not having the money and getting a refund a year later when it’s worth less.

My guess is the rule for greater withholding went in because of this idea. The majority of people would prefer to risk it, and the majority of people end up short at tax time.