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I received a bonus from my employer. Do I have to pay tax? |
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Bonuses are considered to be taxable income to the recipient, whether received as cash or in the form of goods or services. Employers are required to take out the proper amount of employment taxes from any bonus that is paid to an employee, in advance. When the bonus is a good or service, the taxpayer must include the fair market value of the item on their tax return. Other types of remuneration that must be included in a taxpayer's income include benefits such as memberships, group-life insurance premiums that exceed $50,000 of protection, employer contributions into non-qualified retirement plans and more. |
