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| Re: NJT workers get nice checks (319870) | |||
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Re: NJT workers get nice checks |
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Posted by kcram3500 on Wed Oct 19 12:01:12 2016, in response to Re: NJT workers get nice checks, posted by TerrApin Station on Wed Oct 19 07:50:20 2016. A large lump sum will usually change your tax bracket. Let's say you normally make $75,000... your taxes are deducted based on that rate of pay. Then late in the year, you get a large lump sum of back pay like this. Because it's specifically listed as back pay and not a bonus, the tax deductions are "normal" just for that amount of money, but not for what you have had deducted all year. (Bonuses are taxed differently.) $20K changes your tax bracket, and now you may find yourself owing the IRS and/or state instead of the refund you may have expected. |
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