Viewing a single comment thread. View all comments

ichosetobehere t1_j6d66hw wrote

Reply to comment by Its-a-write-off in Owe almost 10k in federal income taxes? by [deleted]

Just under half is a bonus. Do they withhold less than normal for those?

1

Its-a-write-off t1_j6d6qw8 wrote

Yes, off payroll pay can't use the algorithm, so they withhold the most common tax bracket, 22%. That's not enough for you, since you are high income. So the dollars over 100k total were seeing under withholding from 2% to 10%

At your income, running the withholding calculator at least twice a year is needed to keep on top of withholding.

2

ichosetobehere t1_j6d7lew wrote

Thank you, this was the response I was looking for and clears that up :)

1