I received this link from PayPal about the IRS today.

[Chili Palmer]

Is the entire $6500 bonus counted at the end of the year as income? YES Has tax already been taken out of that $6500? yes

And was that tax credited towards taxes paid - yes.

Again, good luck in life.

 

[SSP]

Good luck in life.

Thank You , it is a blessing to be alive every day.

 

[Chili Palmer]

Thank You , it is a blessing to be alive every day.

Yes it is

 

[SSP]

And was that tax credited towards taxes paid - yes.

Again, good luck in life.

Will that put you in another income bracket? maybe, not good for the tax paying citizen

 

[Chili Palmer]

Will that put you in another income bracket? maybe, not good for the tax paying citizen

The bonus itself may put you in another income bracket, not the fact you already paid taxes on it. Once that check is handed to you/cashed it is income that is applied to the end of the year.

 

[SSP]

The bonus itself may put you in another income bracket, not the fact you already paid taxes on it. Once that check is handed to you/cashed it is income that is applied to the end of the year.

I know how the money is accounted, my point is it is not in favor of the tax paying citizen, it is designed so the tax payer pays the most possible, even for low wage earners while the IRS claims to want to go after Millionaires and Billionaires.

 

[Chili Palmer]

I know how the money is accounted, my point is it is not in favor of the tax paying citizen, it is designed so the tax payer pays the most possible, even for low wage earners while the IRS claims to want to go after Millionaires and Billionaires.

You can change the amount of taxes deducted from your paycheck via the W4. I pay very little taxes on a per-pay basis knowing I will owe at the end of the year. Although I know the rules, it doesn't mean I agree with them

 

[The Old Jaybird]

I worked as an independent contractor to state governments via an LLC, wrote off lots of my expenses since it was remote site work, airfare, hotels, meals, business expenses, incidentals, etc.