[softengine]

Why just 2018? Bonuses are taxed at a much higher rate than regular pay. Somewhere between 30 and 40%. There is no justification for that. It is truly theft.

Make it permanent and allow us make the most use out of our bonuses.

[Lou L]

Somewhere between 30 and 40%

I'm fortunate enough to receive a (nearly) regular annual bonus at my company. It's based on a formula of financial incentives and level within the company. Once the full bonus is calculated, I have to multiple the result by 0.6, to arrive at the net payout.

You're absolutely correct. Why is such a bonus considered special enough to take 40% and give it to the government?

[CurlyDave]

...Why just 2018? Bonuses are taxed at a much higher rate than regular pay. Somewhere between 30 and 40%. There is no justification for that. It is truly theft.

This is just plain not true.

There is no special line on the 1040 form for bonuses. They are taxed as ordinary income.

Now, because they are in addition to regular income, they are taxed at your marginal rate, which is higher than you average rate, but there is no special treatment of bonuses.

[ridesthemiles]

Been doing bookkeeping/accounting for over 60 years. Never heard of a bonus being taxes at a higher rate than the rest of my earned income.