How much are bonuses taxed in NC?

[Donald LaFell]

I've heard as much as 50%, I'm starting a new job soon and I'm curious to know how much. 

 

I didn't get relocation benefits due to IRS rules so my company added more money to an already sizable signing bonus, now I will be getting a fairly large check of 7500 dollars around July and I would like to know if any people in the same boat know how much I'm going to lose?

 

Some online calculators have said I'll have as high as 5k but I'm not that optimistic. 

 

In case anybody is wondering my plan right now is to just sock it away into an emergency fund while I aggressively pay down debts. I feel fortunate to be in my position but I have a long road ahead to build a stable financial base.  

[Panthro]

My rule of thumb is usually 40%

[Panthro]

Also you can deduct moving expenses

[Donald LaFell]

Also you can deduct moving expenses

 

I don't think I pass the 50 mile test but I'll keep looking into it!

 

http://www.irs.gov/taxtopics/tc455.html

[Chimera]

I recently had a similar sized bonus; was taxed 25% by the feds and 6% by NC

 

$8000 bonus

-$2000 feds

-$480 NC

$5520 Net

[PandaPancake]

Stupid federal government and their taxes. I wouldn't mind so much if they didn't dick around by switching tax brackets on you for each check.

Also the stupid things they spend money on just hurts

Sent from my XT1080 using CarolinaHuddle mobile app

[Anybodyhome]

My wife and I relocated last year for her new job and her company paid for the moving expense up to a certain amount. Not sure what "IRS rules" you're talking about since it's the employer's decision whether or not to offer a relocation package, which should not be categorized as a "bonus."

 

Also, any trips you make back and forth to finalize moving, cleaning up the place, etc. are also mileage deductibles on your taxes. Most employers who offer a relocation package simply have you submit all related invoices and bills and they reimburse you, so it is a true expense reimbursement without carrying a 25% tax hit as for being an award or bonus.

 

 

 

 

[KillerKat]

I recently had a similar sized bonus; was taxed 25% by the feds and 6% by NC

 

$8000 bonus

-$2000 feds

-$480 NC

$5520 Net

Damn that's a fuging huge chunk

[MadHatter]

I recently had a similar sized bonus; was taxed 25% by the feds and 6% by NC

 

$8000 bonus

-$2000 feds

-$480 NC

$5520 Net

 

That does not include FICA taxes....which is another 7.65%

 

Panthro was correct in saying that it would be about 40%.....25% Fed, 7-8% State,  7.65% FICA.

 

However, there are caps on the SS and FUTA/SUTA portions of FICA.  So,  depending how much you make overall and when the bonus is paid, FICA could be less than the above amount.

 

But, the thing to remember is that this is NOT how it is truly "taxed".....it is the amount that is "withheld".  The bonus dollars are actually taxed at the same rate as all of your other salary. 

[Jase]

it depends on how much it is and how your payroll company treats it.

 

My experience is that they usually tax it as if that was your regular paycheck.  So if it's an $8000 bonus, they tax it as if you make $200,000 per year.  So a bunch.

 

But the good news is you get the difference back at the end of the year when you file your taxes.

[MadHatter]

it depends on how much it is and how your payroll company treats it.

 

My experience is that they usually tax it as if that was your regular paycheck.  So if it's an $8000 bonus, they tax it as if you make $200,000 per year.  So a bunch.

 

But the good news is you get the difference back at the end of the year when you file your taxes.

 

They do not do that anymore....mandate came out by the IRS that requres all "bonus" payments to be witheld at the maximum amount.  You can't adjust your witholdings for that check anymore to manipulate the witholding.

 

Also, there is a way that you can get the excess witheld back quicker than waiting until the end of the year.  Increase your witholdings on your W4 for a few paychecks (which will lower the tax witholding on those checks).  Then, change your witholdings back to your normal number after a few paychecks.

[Jase]

They do not do that anymore....mandate came out by the IRS that requres all "bonus" payments to be witheld at the maximum amount.  You can't adjust your witholdings for that check anymore to manipulate the witholding.

 

Also, there is a way that you can get the excess witheld back quicker than waiting until the end of the year.  Increase your witholdings on your W4 for a few paychecks (which will lower the tax witholding on those checks).  Then, change your witholdings back to your normal number after a few paychecks.

 

This is good info, thanks.  But I work for a small company without an HR dept, (my direct boss does this for the office) so changing W-4 withholding for a short period is likely to irritate him.

[Kettle]

I didn't look at the breakdown of fed, state, etc. but the net of my last bonus was around 40% less than gross.

[sharkkiller]

When i used to get bonuses, I always figured it at 42% tax. That was just about the largest tax bracket at the time. Go to irs.gov and check the highest tax bracket, and assume that will be the amount withheld. Better to be safe than sorry, and count on getting something you end up not getting.