Whether it’s the year-end check that makes holiday shopping a little less stressful or feeling more valued at the receipt of a reward for your great performance, a bonus is always a welcome windfall.
Of course, your bonus counts as income. When you earn money, you almost always have to save some of it for Uncle Sam. So how are bonuses taxed, exactly?
How Bonuses Are Taxed
Here’s what the IRS says about how it determines classifications of bonuses and how taxes play a part.
First, What Qualifies as a Bonus?
According to the IRS, bonuses are considered “supplemental
