Do you have to pay US taxes on bonus income?

Answer by  flamiss22 (5081)

Any income that is over six hundred dollars has to be reported and the appropriate taxes taken out. You may get one W-2 for the bonus and the regular wages or just one for both. If your bonus is a lot and you will get the same next year try and give some to charity to offset it.

Answer by  MarkWatrous (729)

All income is taxable. Your bonus will show up in Box 1 of your W-2 Form. If that bonus does not show up in your Box 1, you will have to pay the taxes. The bonus you received was an expense for your employer, and you are on the hook for that income so they can deduct their expense.

Answer by  julio (38)

Bonus income is subject to income tax, and must be reported on your Form 1040. It is also a writeoff for the company giving the bonus.

Answer by  John (9008)

Any income that you earn in the United States is taxable. This includes not only your regular wages, but any bonuses or commissions. Even if the bonus is not in cash form (for example, if you get a company car or a vacation) it is still taxable. Your employer should deduct regular taxes from any bonus that you get.

Answer by  BrianSJ (524)

The rules are complex, but in most cases, you do have to pay taxes on bonus income that derives from your employment.

Answer by  Roland27 (16334)

Yes you do. Any income has to be recorded on the W-2 form that the employer gives you. This bonus will be on there and you will be taxed.