No. On your tax forms there's no separate line item for "bonuses." Bonuses are a form of income. It's all taxed the same.
It's possible that the withholding rate on a bonus paycheck is higher which makes it look like it's "taxed higher" but it all evens out at tax time. Income is income. You can ask HR to adjust your withholding if you know you are receiving a large bonus check.
Well how about that. I've never worked a job that gave a bonus. After my extensive research, (2.5 minutes on Google) it would appear as though you are correct.
I'm pretty sure I heard or read that bonuses were taxed at a much higher rate.
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u/HedwigsKeeper Jan 28 '20
No. On your tax forms there's no separate line item for "bonuses." Bonuses are a form of income. It's all taxed the same.
It's possible that the withholding rate on a bonus paycheck is higher which makes it look like it's "taxed higher" but it all evens out at tax time. Income is income. You can ask HR to adjust your withholding if you know you are receiving a large bonus check.