Bonus tax question

[Ravi]

How is it that the employees at these financial companies never had to pay taxes on their bonuses to begin with? I thought income was income, but it sounds as if they were receiving this money tax free all along.

Does anyone know?

 

[dilloduck]

How is it that the employees at these financial companies never had to pay taxes on their bonuses to begin with? I thought income was income, but it sounds as if they were receiving this money tax free all along.

Does anyone know?

You don't owe any taxes on income that you haven't received.

 

[RetiredGySgt]

They would be taxed AFTER receiving the bonus.

 

[Article 15]

How is it that the employees at these financial companies never had to pay taxes on their bonuses to begin with? I thought income was income, but it sounds as if they were receiving this money tax free all along.

Does anyone know?

Taxes are automatically taken out of my bonus check.

 

[auditor0007]

They would have had to pay taxes, at their normal rate, on these bonuses.

 

[manifold]

How is it that the employees at these financial companies never had to pay taxes on their bonuses to begin with? I thought income was income, but it sounds as if they were receiving this money tax free all along.

Does anyone know?

You normally wait to play stupid until you're responding to someone else's post. I guess you're growing a little less patient.

 

[garyd]

www.xkcd.

Sums up my feelings about this whole bonus thing quite necely...