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Old 05-26-2010, 11:46 AM   #21
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Dang it... you sure know how to burst my bubble... yes, I will be owing SS taxes on it then... .
And how would you go about paying it? And the employer share? It isn't self employment income where you would pay self employment tax.

This whole thing doesn't make sense. Your employer has the job of withholding. Get yourself to HR and find out what the deal is.
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Old 05-26-2010, 12:20 PM   #22
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It sounds like this "bonus" is being paid on a 1099 misc. Check with your employer and find out. In which case you will pay the FICA and federal and state taxes that are due on it. Paying you this way when you are a W-2 employee probably isn't correct but it is often done.

Job hunting expenses are deductible subject to going over 2% of AGI and being able to itemize. Your AGI will include the spouses income. If this bonsus is being paid on a 1099 MISC. you report it on a schedule C as business income and can deduct any expenses you have against it.
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Old 05-26-2010, 07:04 PM   #23
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It sounds like this "bonus" is being paid on a 1099 misc. Check with your employer and find out. In which case you will pay the FICA and federal and state taxes that are due on it. Paying you this way when you are a W-2 employee probably isn't correct but it is often done.

Job hunting expenses are deductible subject to going over 2% of AGI and being able to itemize. Your AGI will include the spouses income. If this bonsus is being paid on a 1099 MISC. you report it on a schedule C as business income and can deduct any expenses you have against it.
And if this is the case, the OP will have to pay self employment tax on the bonus. But it really isn't proper for the employer to do it this way. But I can understand any disinclination to complain to his employer about it.
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Old 05-26-2010, 09:56 PM   #24
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And if this is the case, the OP will have to pay self employment tax on the bonus. But it really isn't proper for the employer to do it this way. But I can understand any disinclination to complain to his employer about it.
If the total comp is over 109k then the SS will come back at tax time in 2011, thru a reduction in the payments on schedule SE. You will pay the 2.9% however on the total.
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