Taxing holiday bonuses - how does this work?

[Kode]

TAXES. My bonus was 25 buck card for Cub. Eat it. And I work for a billion dollar company.

 

[Silk]

It's usually a $100 note inside the Christmas card...but this year was just a $50 gift card for the local supermarket. Xmas is all about eating, so I'm happy with that.

 

[NormanBuntz]

When you compare your final paystub of the year to your W-2, you'll know if your employer included the bonus on your W-2. If they didn't, smart money says to claim the bonus amount as miscellaneous income on your tax return.

 

[anndel]

I've worked for the private sector and now federal government and cash bonuses were taxed. Companies I'e worked for would put in extra for tax so if they said $10,000 bonus, they would give extra so you get the entire bonus. Now I work for the feds, DoD, and all cash bonuses are subject to tax and I would get less. It all counts as income.

 

[xxch4osxx]

Some companies are giving pre-paid Visa or Mastercards as bonuses.

 

[Doc8404]

They take taxes and 401k out.
Ended up being pretty ugly but appreciated.

 

[Kestas]

Bonuses are taxed at a higher rate because bonuses are typically larger then your regular paycheck. The algorithms used to calculate tax deductions assume you'll be making that much the whole year. At least that's what I've been told. It's just a blip in your deductions that washes out when you do your taxes.