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Tax Return Question

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Ytowngirlinfla's avatar

Ytowngirlinfla

I wear real chevrons!

2,295 posts
Jan 1, 2011 6:34 PM
So I'm trying to estimate what my tax return will be this year. I'm not sure if this is right or not but I received a partial payment of my bonus. It was 12800, 9600 after taxes. Will I get a bigger return this year because of this? Or is this not calculated on a W2 as income?
Jan 1, 2011 6:34pm
M

Manhattan Buckeye

Senior Member

7,566 posts
Jan 1, 2011 6:37 PM
It is calculated as ordinary income on your W2. The return depends on your withholding on the rest of your FY '10 income.

Likely you will get an increased return because your bonus was probably withheld at a higher rate than the rest of your salary payments.
Jan 1, 2011 6:37pm
wes_mantooth's avatar

wes_mantooth

Tomfoolery & shenanigans

17,977 posts
Jan 1, 2011 6:56 PM
^^^Pretty much, although sometimes those bonuses can bump you into a higher tax bracket.
Jan 1, 2011 6:56pm
Ytowngirlinfla's avatar

Ytowngirlinfla

I wear real chevrons!

2,295 posts
Jan 1, 2011 7:37 PM
wes_mantooth;620597 wrote:^^^Pretty much, although sometimes those bonuses can bump you into a higher tax bracket.

I don't know how much higher, with my bonus I only made 34,000. If I post my numbers can someone help me out? Obviously I don't have my W2 yet so it's coming from my last paycheck.
Jan 1, 2011 7:37pm
M

Manhattan Buckeye

Senior Member

7,566 posts
Jan 1, 2011 7:45 PM
If your gross income is $34,000 you will likely get a large return. The withholding is significant because the payroll provider treats the payment as a "normal" payment, thus the $12,800 is treated as if that is your normal paycheck and withholds at a rate of someone making $12,800 per pay period, which it isn't.

It stinks that the withholding is that much, but on the other hand at least this happened in December (I assume), it happens to a lot of people at the beginning of the year. My wife's bonus is paid out late January and they damn near take out half of it. We get it back 15 months later but its still bothersome.
Jan 1, 2011 7:45pm
wes_mantooth's avatar

wes_mantooth

Tomfoolery & shenanigans

17,977 posts
Jan 1, 2011 7:51 PM
I agree with Manhattan... at that income and with what they took out for the bonus...you should be in pretty good shape.
Jan 1, 2011 7:51pm
Ytowngirlinfla's avatar

Ytowngirlinfla

I wear real chevrons!

2,295 posts
Jan 1, 2011 7:52 PM
Manhattan Buckeye;620693 wrote:If your gross income is $34,000 you will likely get a large return. The withholding is significant because the payroll provider treats the payment as a "normal" payment, thus the $12,800 is treated as if that is your normal paycheck and withholds at a rate of someone making $12,800 per pay period, which it isn't.

It stinks that the withholding is that much, but on the other hand at least this happened in December (I assume), it happens to a lot of people at the beginning of the year. My wife's bonus is paid out late January and they damn near take out half of it. We get it back 15 months later but its still bothersome.

I got my bonus in August. I'll just be happy to get a huge return as last year I think with my civilian job and military pay they messed up my tax so they weren't taking enough out.
Jan 1, 2011 7:52pm
#1DBag's avatar

#1DBag

Nothing to see here.

786 posts
Jan 1, 2011 11:24 PM
This is all crazy talk, just don't file your taxes.
Jan 1, 2011 11:24pm
M

Moparman

Senior Member

113 posts
Jan 11, 2011 9:07 PM
Can anyone give me an idea of how the student loan interest deduction works? I got an e-mail from my student loan provider and I paid right around $1,442 in interest for 2010. Will I get all of this back on my taxes? I have never filed with this before
Jan 11, 2011 9:07pm
S

Scrawney

Member

93 posts
Jan 11, 2011 9:19 PM
No, the amount of money paid in interest comes off of your taxable income. If your taxable income was 40k before the interest deduction you would now have a taxable income of 38558.
Jan 11, 2011 9:19pm
T

thavoice

Senior Member

14,376 posts
Jan 12, 2011 9:18 AM
ytowngirlinthenavy.....Do you all use mypay website? Got an email that the W2 are on there electronically...have not checked but thats an email I got.

As for your taxes...yeah..I imagine more back because they tax the heck outta bonuses
Jan 12, 2011 9:18am
T

thavoice

Senior Member

14,376 posts
Jan 12, 2011 9:19 AM
Moparman;634830 wrote:Can anyone give me an idea of how the student loan interest deduction works? I got an e-mail from my student loan provider and I paid right around $1,442 in interest for 2010. Will I get all of this back on my taxes? I have never filed with this before
I always used turbotax..and there was a spot to enter in your interest paid from student loans. I dont think you get it all back.....
Jan 12, 2011 9:19am
Ytowngirlinfla's avatar

Ytowngirlinfla

I wear real chevrons!

2,295 posts
Jan 12, 2011 9:49 AM
thavoice;635254 wrote:ytowngirlinthenavy.....Do you all use mypay website? Got an email that the W2 are on there electronically...have not checked but thats an email I got.

As for your taxes...yeah..I imagine more back because they tax the heck outta bonuses
Yeah I use mypay all the time. The Navy w2's for active duty aren't ready till the end of January.
Jan 12, 2011 9:49am
LJ's avatar

LJ

Senior Member

16,351 posts
Jan 12, 2011 9:54 AM
Manhattan Buckeye;620693 wrote:If your gross income is $34,000 you will likely get a large return. The withholding is significant because the payroll provider treats the payment as a "normal" payment, thus the $12,800 is treated as if that is your normal paycheck and withholds at a rate of someone making $12,800 per pay period, which it isn't.

It stinks that the withholding is that much, but on the other hand at least this happened in December (I assume), it happens to a lot of people at the beginning of the year. My wife's bonus is paid out late January and they damn near take out half of it. We get it back 15 months later but its still bothersome.

If you know the bonus is coming why not adjust the witholdings for that pay period?
Jan 12, 2011 9:54am