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02-14-2020, 09:44 AM

DontGetHooked

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Posts: 42

Profit Share Pay Advice Posted

For those interested

02-15-2020, 06:14 PM

BMEP100

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Joined APC: May 2014

Position: Tom’s Whipping boy.

Posts: 1,182

Check your withholding

Thanks for the heads up. Glad I checked it. Contrary to my instructions to put 100% into my 401(k), they are not putting any into it. Although it is already close to being maxed for the year, there should still be a few thousand going to fund it.

Now I need to figure out who to contact.

02-16-2020, 06:04 AM

757Driver

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Joined APC: Dec 2005

Position: Unbridled Enthusiasm

Posts: 2,143

Love the 45% taxes we pay on bonus checks.

02-16-2020, 06:11 AM

Airhoss

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Joined APC: Apr 2008

Position: Sleeping in the black swan’s nest.

Posts: 5,726

Quote:

Originally Posted by 757Driver

Love the 45% taxes we pay on bonus checks.

You are taxed at 35% minus Alpa fees and FICA. But you get back the difference between 35% and your effective tax rate via tax refund when you file next year.

02-16-2020, 07:06 AM

DWC CAP10 USAF

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Quote:

Originally Posted by 757Driver

Love the 45% taxes we pay on bonus checks.

22% Federal + 6.2% Social Security + 1.45% Medicare + 1.85% ALPA = 31.5%

Then throw in your state withholdings...is your state taking another 13.5%?

02-16-2020, 08:11 AM

Winston

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Joined APC: Jul 2015

Position: Skeptical

Posts: 737

Quote:

Originally Posted by 757Driver

Love the 45% taxes we pay on bonus checks.

I can’t believe that we have to explain the difference between tax rates and tax withholding every year:

https://blog.turbotax.intuit.com/inc...-the-irs-8003/

Quote:

No matter what method is used to withhold taxes from your bonus at payout, don’t panic. Remember, taxes may be withheld from your bonus at a higher tax rate at payout, but when you file your taxes at tax time your actual tax rate is based on your total taxable income and overall actual tax rate, which may be lower. Depending on your taxable income, actual tax rate, and eligible tax deductions and credits you may get some of the money withheld back in the form of a tax refund.

02-16-2020, 09:17 AM

Galaxy5

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Posts: 456

Quote:

Originally Posted by DWC CAP10 USAF

22% Federal + 6.2% Social Security + 1.45% Medicare + 1.85% ALPA = 31.5%

Then throw in your state withholdings...is your state taking another 13.5%?

California can make your wildest dreams come true. Mine was withheld at ~43%.

02-16-2020, 09:37 AM

flightmedic01

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And that’s why I would never live in CA! PA is a flat 3%!!

02-16-2020, 10:25 AM

Andy

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Position: guppy CA

Posts: 5,171

Quote:

Originally Posted by Galaxy5

California can make your wildest dreams come true. Mine was withheld at ~43%.

Yep. And those same people from CA who kept voting for tax and spenders have been moving into my state of NV and have been getting tax and spend politithugs elected here.
I may have to move to WY if too many more of those politimorons move to NV and get more tax and spenders voted into office.

02-16-2020, 10:46 AM

#10

iahflyr

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Posts: 1,610

I wish my marginal federal tax rate was only 22%. I was in the 28% federal tax bracket during the Bush and Obama years. Now for the same income, Trump’s tax package pushed me into a 32% effective rate. Oh yea, and I lost a ton of writeoffs (SALT cap, union dues, per diem differential, etc...).

I live in CA and my effective CA state tax rate is 5.5%. I have no problem with my state taking 5.5% of my total income. But the federal government taking 32% of each extra dollar I earn is crap. Thanks for the tax hike GOP.