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Signing Bonus???


SheetMetalJoe

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If this is taxed the same for everyone as a bonus at a certain rate how did you clear 3800 & I clear 3200? That means they only taxed you at around 37%, it has always been 43% in the past, mine is 46% this time, what gives?

Edited by 2 seater
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If this is taxed the same for everyone as a bonus at a certain rate how did you clear 3800 & I clear 3200? That means they only taxed you at around 37%, it has always been 43% in the past, mine is 46% this time, what gives?

 

 

Difference can include number of deductions, total year to date (can effect FICA) Do you have support payment coming out? Other variables such as state or city of residence also have an effect on overall taxes.

 

42% is an AVERAGE...Here in Michigan, it can be higher if you live IN Detroit -vs-in the suburbs, If someone has hit the upper limit for Social Security deductions that will have an effect. Also if the check was partially put into 401K

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Difference can include number of deductions, total year to date (can effect FICA) Do you have support payment coming out? Other variables such as state or city of residence also have an effect on overall taxes.

 

42% is an AVERAGE...Here in Michigan, it can be higher if you live IN Detroit -vs-in the suburbs, If someone has hit the upper limit for Social Security deductions that will have an effect. Also if the check was partially put into 401K

Thanks, did not know all of that, no support payments, I claim 5 on deductions, nothing going in 401k, not really understanding the FICA part perhaps being laid off for a year affected FICA but people that I work with who have also been off during the same time & live in the same county cleared 4 to $600 more.

Edited by 2 seater
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Thanks, did not know all of that, no support payments, I claim 5 on deductions, nothing going in 401k, not really understanding the FICA part perhaps being laid off for a year affected FICA but people that I work with who have also been off during the same time & live in the same county cleared 4 to $600 more.

 

If you paid in more than you were required to do, after completing your 2011 tax return you will get it back.

 

It doesn't matter what your deductions are as everyone was taxed at 25% federal ($1500). Local, state, FICA can be different for everyone based on where they live. As one poster mentioned, if you've already reached the max earninsg for FICA, that can make a difference as well.

Edited by Twincam Harley
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If you paid in more than you were required to do, after completing your 2011 tax return you will get it back.

 

It doesn't matter what your deductions are as everyone was taxed at 25% federal ($1500). Local, state, FICA can be different for everyone based on where they live. As one poster mentioned, if you've already reached the max earninsg for FICA, that can make a difference as well.

 

As I said where I live is the same place others live who cleared much more. Anyway thanks to everyone for trying to help explain.

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