Skip to main content
Level 2
March 3, 2025
Question

1099- misc a bonus from car dealer ship

  • March 3, 2025
  • 4 replies
  • 30 views

the man work at a car dealer ship and he get a bonus of 19000 and they want to know what he is % of tax rate is on this

 

This topic has been closed for replies.

4 replies

Just-Lisa-Now-
Intuit Community Champion
March 3, 2025

are we guessing?    without seeing his overall tax picture, that's all anyone here could do.   

What tax bracket does he land in?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
sjrcpa
Level 15
March 3, 2025

Is it a spiff?

Or a bonus that should have been on a W-2?

The more I know the more I don’t know.
Accountant-Man
Level 13
March 4, 2025

Probably a spiff.

** I'm still a champion... of the world! Even without The Lounge.
sjrcpa
Level 15
March 4, 2025
The more I know the more I don’t know.
abctax55
Level 15
March 4, 2025

"They" meaning the dealership?

"They" meaning your client?

HumanKind... Be Both
qbteachmt
Level 15
March 4, 2025

"The people wanted to know what tax rate were they being taxed at, well i told them i would ask around and see if i could get some idea, I said that they needed to put 30% of the amount in to a saving account and or put it away so that they could have money set a side to pay the taxes on it"

As you likely know, the tax brackets are Additive. There is no fixed tax on a payment, whether that is commission, sales of stock, paychecks, rent, or any other income considered taxable ordinary income.

You could have one sales person with $20,000 payroll who gets a $20,000 bonus.

You can have another sales person with $200,000 payroll who gets a $20,000 bonus.

You can have another sales person with $40,000 payroll, a spouse with $40,000 payroll, some rental income, and also gets a $20,000 bonus.

Each of these people have different tax rates because we work off of tax brackets, not flat tax tables. You know this because you see it every time your work on a Form 1040.

Don't yell at us; we're volunteers