Quote:
Originally Posted by jay santos
bonus
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If you have tons of deductions on your W4 it should also apply to your bonus, no?
On my w4 there are two items, deductions and extra per month. I put the appropriate number of deductions to account for my salary and an extra per month (as a dollar amount) to cover other income (taxable investments, consulting). If my other income starts to get too high in a particular year I have the lovely experience of filing estimated taxes every 3 mos.
In your case I guess you need to write "10" or something large for Federal deductions.
I try to automate savings withdrawals and don't tell the wife much about the extent of "other income" to keep the spending side under control.