Bonus tax question

Discussion in 'Current Events' started by Ravi, Mar 20, 2009.

  1. Ravi
    Offline

    Ravi Diamond Member

    Joined:
    Feb 27, 2008
    Messages:
    81,430
    Thanks Received:
    12,698
    Trophy Points:
    2,205
    Location:
    Hating Hatters
    Ratings:
    +29,863
    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?
     
  2. dilloduck
    Offline

    dilloduck Diamond Member

    Joined:
    May 8, 2004
    Messages:
    53,240
    Thanks Received:
    5,552
    Trophy Points:
    1,850
    Location:
    Austin, TX
    Ratings:
    +6,403
    You don't owe any taxes on income that you haven't received.
     
  3. RetiredGySgt
    Offline

    RetiredGySgt Platinum Member

    Joined:
    May 6, 2007
    Messages:
    39,581
    Thanks Received:
    5,905
    Trophy Points:
    1,140
    Location:
    North Carolina
    Ratings:
    +9,001
    They would be taxed AFTER receiving the bonus.
     
  4. Article 15
    Offline

    Article 15 Dr. House slayer

    Joined:
    Jul 4, 2008
    Messages:
    24,673
    Thanks Received:
    4,832
    Trophy Points:
    183
    Ratings:
    +4,859
    Taxes are automatically taken out of my bonus check.
     
  5. auditor0007
    Offline

    auditor0007 Gold Member

    Joined:
    Oct 19, 2008
    Messages:
    12,566
    Thanks Received:
    2,255
    Trophy Points:
    255
    Location:
    Toledo, OH
    Ratings:
    +3,218
    They would have had to pay taxes, at their normal rate, on these bonuses.
     
  6. manifold
    Offline

    manifold Diamond Member

    Joined:
    Feb 19, 2008
    Messages:
    48,778
    Thanks Received:
    7,234
    Trophy Points:
    1,830
    Location:
    your dreams
    Ratings:
    +20,889
    You normally wait to play stupid until you're responding to someone else's post. I guess you're growing a little less patient. :eusa_whistle:
     
  7. garyd
    Offline

    garyd Senior Member

    Joined:
    Dec 19, 2008
    Messages:
    3,943
    Thanks Received:
    401
    Trophy Points:
    48
    Location:
    Oklahoma
    Ratings:
    +401
    www.xkcd.

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

Share This Page