If you receive a bonus separately from your standard paycheck, your employer is most likely working read more with the percentage method to work out just how much tax to withhold in your bonus. Here's how that works:

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When your bonus Look at hits, consider using the extra funds for these accounts (for those who haven’t previously hit your max contributions).

Check how your bonus has an effect on your tax bracket. Your bonus can force you up into the next tax bracket, as well as your tax legal responsibility may boost.

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Whilst you probable are not able to stay away from shelling out taxes with your bonus totally, You need to use your bonus funds wisely to lower just how much you will owe at tax time.

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