Yearly Bonus Ripped Off?

Nurses General Nursing

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So at my local hospital, nurses are getting a yearly bonus. But, I guess the IRS taxes the hell out of them. Up to 40 percent of their bonus is gone! Do you think this is crazy? A bonus is payment that a nurse earns, and it should not be tampered with! Maybe someone with more experience with taxes can explain why this happens.

Specializes in Critical Care, ED, Cath lab, CTPAC,Trauma.
It's funny, I wonder how long a thread with the ***** word in the title would last. I'm beyond offended that not only is it still up but the most common response to it had been "didn't know, lol". That's beyond offensive.
Then I apologize that you were offended.
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Specializes in Surgery.
It's funny, I wonder how long a thread with the ***** word in the title would last. I'm beyond offended that not only is it still up but the most common response to it had been "didn't know, lol". That's beyond offensive.

That's a ridiculous statement, ****** has no where near the history the other word does. If you don't like it correct people and move on.

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Specializes in Critical Care, ED, Cath lab, CTPAC,Trauma.

MODERATOR NOTE:

all posts have been edited for the offensive word.

All further posts will be edited. Please refrain from using these words.

The topic of the thread is taxing of a bonus.

Please stick to topic.

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Specializes in Oncology.
The misinformation in these tax threads is astounding. Here are some federal tax rates for a single filer for 2014 (amounts are AFTER deductions):

$9,075 to $36,900: 15%

$36,900 to $89,350: 25%

$89,350 to $186,350: 28%

There is no "Special Nurse Bonus" tax rate. You pay the exact same rate. If your bonus was so large it bumped you to over $186,350 in taxable wages, please let me find a tissue for you.

Incidentally, the highest tax rate is 39.6% for taxable income over $406,750. I sincerely doubt the OP's bonus was in that range.

Your paycheck withholding rates can vary - but my experience is that they are never taxed at the huge percentages quoted by people like the OP. In the end, you are taxed at the same rate.

Math is not that hard, people.

That's great that the federal taxes are that reasonable. That doesn't include state taxes, though. So I'm paying 25% in federal taxes and another 7% to the state. That is nearly a third of my income gone to taxes and we haven't even looked at what I pay to Medicare or SSI yet. If someone did have a paycheck that was substantially higher than usual, it will have more money in taxes taken out. Yes, some of that will likely be gotten back when filing taxes, but it's still painful to watch when it happens.

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Specializes in ER/Emergency Behavioral Health....

The state taxes is where I lose most of my bonus. Between the state and federal taxes combined, about 40% of it is gone. Then they take out the Medicare and SS as well. So that's about where the other 10% goes.

A $500 bonus turns into $250 at the end of it all.

It is $250 I wouldn't have had before so I'm not bitter or angry. Just confused as to why they can't put it in a separate check.

I'll probably use the money to get my husband something nice for Christmas because he is putting up with me through nursing school.

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Specializes in Orthopedic, LTC, STR, Med-Surg, Tele.

.... Bo-nus?

JK. We get them during the holidays and I lose around 20% to taxes every year. But hey, it is more than I would have had otherwise. Besides, they emphasize that EVERYONE GETS THE SAME BONUS (prorated for FT and PT) so I feel better knowing I get the same bonus as the hospital CEO.

Before everyone gets jealous, it's not a lot.

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Of course it's taxable. It's income.

You want the hospital should pay you under the table or something?

Ummm...yes.

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Specializes in Geriatrics, Dialysis.

On the rare occasions we get a bonus we have enough warning to change withholding for that pay period. So for the bonus check pretty much everyone changes their deductions to 9. Then you have to remember to change it back to your normal deductions or tax time will be a big ouch!

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Specializes in CEN, CFRN, PHRN, RCIS, EMT-P.

You know what's not taxable income? The billions in earnings from stocks etc from the fat cats in Wall Street.

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Specializes in Critical Care, ED, Cath lab, CTPAC,Trauma.

MODERATOR NOTE:

ALL of topic posts have been edited. This thread is about the taxing of bonus checks.

If you wish to discuss other topics please start another thread.

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Specializes in Cath Lab & Interventional Radiology.

My husband gets profit sharing check once a year, and it does have a significant amount of tax withheld even as a separate check. At the end of the year it is all tallied in the same pot, and we get money back because of the substantial amount withheld. You can adjust your claims when you know such a check is being issued to curb the amount withheld. At my last job prior to nursing, we received quarterly bonus checks. People would frequently "claim 9" for that check only.

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What term is racist and offensive?

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