how are bonuses taxed in california

When it comes to bonuses, the way they are taxed in California is similar to how regular income is taxed. Bonuses are considered supplemental wages, and they are subject to both federal and state taxes.

For federal taxes, bonuses are typically taxed at a flat rate of 22%. However, if the bonus is large enough, it may be taxed at a higher rate. California also taxes bonuses as regular income, and the rate depends on your tax bracket.

It's important to note that bonuses are often subject to withholding for federal and state income taxes, as well as Social Security and Medicare taxes. This means that your employer may withhold a larger amount from your bonus than they do from your regular paychecks.

Additionally, some employers may choose to offer a supplemental withholding rate for bonuses, which helps to ensure that enough taxes are withheld. If your employer offers this option, it can help to prevent any surprises come tax time.

Overall, while bonuses are a nice addition to your income, it's important to be aware of the tax implications that come with them. Understanding how bonuses are taxed in California can help you better plan for how to use that extra income and avoid any unexpected tax bills.

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Hello,My name is Aparna Patel,I’m a Travel Blogger and Photographer who travel the world full-time with my hubby.I like to share my travel experience.

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