Im getting laid off from my job. Im receiving a retention bonus of 5000 dollars. How much will i be taxed?
Theres countless rumors starting around a office. Someone pronounced 46%. How most can it be taxes? Why would it be so much?
By: GiN
By: GiN
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The standard is to withhold 40% for taxes, but if you have high local and state taxes it may be more. It counts as regular income, so depending on the rest of your income and deductions you may get some of that back when you file your taxes next year. Of course, if you think that will be the case, when you get a new job, just adjust your witholding so it comes out even at the end of the year.
That just sucks!!!!..When you are feeling about your lowest,the govt. comes along and kicks you in the belly. I guess that’s why the govt is a poli-tic.
POLI..(meaning many), and ..TIC(meaning blood sucker)
All states are different, but it depends… on whether they tax it as a bonus or if they pay you according to your regular exemptions. Bonus’ get taxed at a higher rate. If your single and claim 1 you can expect a minimum of 21% in taxes…..The more you make the more they take. Ask your HR person they are the only one who can tall you. Most payroll programs will allow them to do a “what if” analysis on any pay scenario.
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