livesoft wrote:You can submit a new W-4 any time you want to change the withholding from your paychecks, so your bonus tax talk is just that talk. If you find that too much tax is withheld from your bonus simply reduce the tax withheld from your paycheck. You can even do this ahead of time before you receive the bonus.
Anyways, I suppose that unless you work for the IRS, the IRS does not withhold any taxes from your paycheck. Your employer withholds the taxes.
My spouse got a "Christmas" bonus in 2012 and no extra taxes were withheld at all.
This isn't always true. It depends on whether your employer opts to treat it like a regular paycheck or supplemental income for withholding purposes. I know that my employer treats it as supplemental, so they withhold a flat 25% for federal taxes from bonus income, regardless of what your W4 says. I have no idea why an employer chooses one or the other or whether there are any proscriptions about which they have to do.
Of course withholding is just withholding and it has no impact on the actual taxes you owe. If you find they withhold too much from your bonus, you can still change your W4 to get that money back on your regular paychecks, or just wait for a refund next year.