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Christmas Bonus

December 17th, 2014 at 02:09 am

The Christmas Bonus came in the mail yesterday. We weren't expecting it until the 19th. It was the same as last year, gross, but less net as they took out some for 401K and 25% for taxes, which they do for all bonuses no matter how big or how small. Gubmint has to catch those super bonuses after all from those tax evading CEO's, by going after everyone who gets them right off the top. We'll get most of it back when we file our income taxes, though.

I am tentatively setting aside $1000 for DH's bachelor's program, and $1000 to the Emergency Fund. I'm not going to decide on the rest of it until I know for sure the exact dollar amount on the van repair. I'd like to set aside more for the bachelor's program. Ideally I'd like to have enough for two classes that he could take back to back. He does one at a time. And then we'd have the income tax return to pay for the next couple classes by the time he'd finished the first two.

$10,000.00 Beginning EF Balance
+_1,000.00 Amount Added
$11,000.00 New EF Balance

4 Responses to “Christmas Bonus”

  1. ceejay74 Says:

    Only 25%? Lucky. They held back over a third of NT's.

  2. FS Says:

    I was curious enough to look this up and for some reason, my bonus last year was treated as if it was regular salary.

  3. Butterscotch Says:

    My bonus, and my husband's, gets dinged for nearly 40%. Maybe it varies by state?

  4. just a thought Says:

    I think they usually are treated as regular salary, but are usually taxed at a higher rate because with the bonus included in your paycheck, it appears your salary is much higher (multiply the paycheck amount by the number of paychecks in a year, and that's what your salary looks like for that paycheck). So you are in a higher tax bracket for that paycheck. So more is taken out.

    Of course, that's not your actual salary, which is why a lot of it gets refunded at tax time. But it isn't that it's a special bonus tax, is just that your salary is higher for that paycheck.

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