Dog Community

Posted : 4/17/2007 2:52:02 PM

My regular salary I have taxes deducted at about 27%. Bonuses take 40%.

You must be getting a great bonus. I just re-checked the tax regs and only bonuses in excess of 1,000,000 are taxed at a rate of higher than 25%.

I get bonuses every year and they have been taxed at 25% for several years now, before that 28%. Of course you have to also add in the SS taxes and Medicare and if you have a 401K deduction that also. I usually end up with about 50% of what the bonus started when you add in the other deductions.

See [linkhttp://www.irs.gov/irb/2006-37_IRB/ar09.html]http://www.irs.gov/irb/2006-37_IRB/ar09.html[/link] about the rates.

g33

Posted : 4/17/2007 3:21:38 PM

My bonus last year was $3,000.00. Hardly anything to sneeze at.

Here's what the actual breakdown was, straight from my payroll records, for my bonus payment this year:

Gross Bonus = $3000
401(k) deductions = $450
Taxable bonus = $2550
Tax deductions = 943.50
Net bonus = $1606.50

That equals 47% in total deductions, including 401(k). As you can see, taxes were taken out at 37%.

Edited to add - sorry, when I talk about "tax deductions" I'm including Social Security and Medicare, since those are mandatory. So I'm including FICA, SS, and Medicare deductions. Didn't mean to confuse the issue, but it doesn't make sense to me to just talk about FICA when there are two other decent size buckets for deductions that we have no choice about.

probe1957

Posted : 4/17/2007 3:23:01 PM

My ex gets more back on her tax refund than she paid in taxes because of the earned income credit. This past year, she paid in about $1000 in withholding and got almost $4000 back in her refund. God Bless America and the McDonalds mentality!!!

timsdat

Posted : 4/17/2007 3:40:29 PM

Here is your bonus broken down by tax category. I don't know what your state rate is but that is probably making up the difference. Social Security and Medicare are things you can't do anything about. At least with the Federal Tax there is is chance of a partial refund.

Raw Bonus      $3,000.00
401K                  $450.00      15.00%
Taxable Bonus $2,550.00
Fed Tax             $637.50      25.00%
SS                    $186.00       6.20%
Med                     $43.50        1.45%
State Tax              ???
Total Ded            $867.00
Net                  $1,683.00

Note Fed tax is applied against the taxable bonus SS and Med are applied against the Raw Bonus.

badrap

Posted : 4/17/2007 5:06:47 PM

ORIGINAL: rwbeagles
BUT when I was 20something, living in either Cali or Texas...unmarried....no kids....retail job...either living at home or with my DH as renters..we never owned anything? I am horrified at the thought that perhaps I owe millions now because I missed something...lol...

trust me, gina... if you owe the IRS anything, they'll be sure and let you know about it[

] the fact that you've been filing protects you. they know where you are, if they want to talk to you, they will....[>:]

i just heard a story the other day on NPR about a french newspaper leading the charge AGAINST lower taxes. their argument, and i happen to think it's a good one, is that taxes pay for the social services we hold so dear. you mail? tax funded. your snowplows and roads? tax funded. public schools and libraries? tax funded. the lower our taxes are, the worse these things get. i am a proponent of taxes, even though i think our tax dollars are horribly mismanaged, and even though i think the distribution of taxation is slightly skewed..

probe1957

Posted : 4/17/2007 5:23:43 PM

ORIGINAL: badrap
and even though i think the distribution of taxation is slightly skewed..

Amen. The rich pay FAR too big a share.

J M

Posted : 4/17/2007 5:29:16 PM

Congress' yearly raise...tax funded

i just heard a story the other day on NPR about a french newspaper leading the charge AGAINST lower taxes. their argument, and i happen to think it's a good one, is that taxes pay for the social services we hold so dear. you mail? tax funded. your snowplows and roads? tax funded. public schools and libraries? tax funded. the lower our taxes are, the worse these things get. i am a proponent of taxes, even though i think our tax dollars are horribly mismanaged, and even though i think the distribution of taxation is slightly skewed..

snownose

Posted : 4/17/2007 5:29:23 PM

I think the government should incorporate a flat tax and get rid of the IRS!!!

badrap

Posted : 4/17/2007 5:46:57 PM

i didn't mean to imply that ALL tax funded things are good. does congress deserve yearly raise (tax funded)-- IMO hell no! not the way they handle the money that's collected! i think everyone in congress would do well to spend a week in my life- that is in the life of the working poor- where we pay the taxes imposed on us and somehow manage to survive anyway.

billy- i'm pretty sure you're not kidding... i don't think the rich pay enough, but neither do i think they should be disproportionately taxed because of their successes.

my point really is that nobody seems to want to pay enough into the pot to keep some things going!

snownose

Posted : 4/17/2007 5:53:51 PM

my point really is that nobody seems to want to pay enough into the pot to keep some things going!

Why punish people who have made a success of their lives?

badrap

Posted : 4/17/2007 5:59:50 PM

that's exactly what i said!

i don't think the rich pay enough, but neither do i think they should be disproportionately taxed because of their successes.

HOWEVER... the idea of taxes as "punishment" is what confuses me. they're not intended to be a punishment. PENTALTIES on not paying your taxes are intended to be a punishment.

snownose

Posted : 4/17/2007 6:03:06 PM

badrap.....I see what you are saying........making a more successful person pay a higher tax rate is punishment.

As we have heard and seen some people don't even pay enough, and get one hell of a refund, to me that is charity.

badrap

Posted : 4/17/2007 6:20:07 PM

i'm going to preface this with the fact that my knowledge about tax code is certainly "limited" at best...

but, snownose, i tend to agree that there seems to be quite a bit of "charity" going on . that is, if in fact people are getting back more than they paid in, or are paying a lesser percentage than what they owe as a citizen.

i don't think ANY working person should EVER be exempt from paying taxes- this is precisely why i have a problem with illegal immigration and the people who employ illegals- but i don't think taxes should be viewed as punitive.

at some point in history, taxes became punitive, when in fact all they really are is a "household contribution" on a grand scale. if you like it here, pay your taxes. if you don't like it here, leave. if you don't like the way your tax money is being spent, elect someone else to decide that. if you still don't like it, run for office[

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snownose

Posted : 4/17/2007 6:23:22 PM

at some point in history, taxes became punitive, when in fact all they really are is a "household contribution" on a grand scale. if you like it here, pay your taxes. if you don't like it here, leave. if you don't like the way your tax money is being spent, elect someone else to decide that. if you still don't like it, run for office

Very good point........I personally couldn't run for office...........too much dirt to dig up from my past...[8D][

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badrap

Posted : 4/17/2007 6:25:46 PM

my dirt's already dug... i wonder if anyone would elect me..

that's it - BADRAP FOR PRESIDENT! you shall all pay your taxes or rosie will come to collect them!

Curious about why people owe taxes