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February 19, 2020
Question

I was paid a very large retention bonus in 2019. It was taxed @ 22%. My Employer reported on my W2 as a regular bonus. I'm having to pay a huge amount more. Correct Y/N?

  • February 19, 2020
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1 reply

February 19, 2020

It is correct as long as that bonus was not more than $1 million. At the end of the year, however, it is still taxed as regular income.

 

Tax withholding at bonus time