Home > Unexpected taxes on the bonus...BOO

Unexpected taxes on the bonus...BOO

December 28th, 2012 at 03:16 am

Got a not so nice surprise in my paycheck today. The $350 cash bonus I received from work was added to my income and taxed and my paycheck was $70 less than normal. :/ HR added an extra 30% to the amount we received to cover taxes, etc...but obviously, that wasnt enough to cover the expense. I shouldnt complain, but ouch. Not expected, not so cool. Thankfully I hadnt spent it, so I can just deduct $70 from savings and add to the household account.

On the other hand, the hubs paycheck had quite a bit of OT and was $531 more than I budgeted. I will need to loan another $155 to dd3 because she learned today she will have to pay for her cold weather training next week, which we hadnt budgeted. This will be paid back out of her earnings while she is in Alaska. Her tab is growing...airline ticket, cold weather gear, hotel, etc...

Tomorrow we leave for the coast for our working weekend..the good part is that we will be off by 3pm each day and we are staying in a ocean view hotel. THAT will be nice. AND, I get Monday and Tuesday off, followed by 3 days and another weekend.

Smile life is good!

3 Responses to “Unexpected taxes on the bonus...BOO”

  1. Jenn Says:

    Our company has begun taxing bonuses - even small ones during the year - the same way. I think it's because of more stringent IRS rules.

  2. FrugalTexan75 Says:

    I've had it both ways (when I got bonuses) - where my bonus was given to me in cash (i.e. no tax), and where it was given to me as part of my pay (taxed.) I much preferred the cash. Smile

  3. snafu Says:

    It's likely a temporary setback like a small, short term loan to the government as you will likely get it mostly returned when you get your income tax rebate.

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