I was talking to a friend today who was talking about tax strategies for bonuses. I know that bonuses are originally heavily taxed but I figured it's added on to your AGI and things even out when you file your taxes. For example if you make $30k and with a $5k bonus you'll get taxed the same as making $35k.
However, my friend, said that a bonus actually shows up in a separate location on your W-2 and it is taxed differently from ordinary income. Is this the case and if so what are some tax strategies for receiving bonuses?
However, my friend, said that a bonus actually shows up in a separate location on your W-2 and it is taxed differently from ordinary income. Is this the case and if so what are some tax strategies for receiving bonuses?