Eli5 – Why are bonuses taxed for everyone

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I work in a profession where my bonus is a small set amount and isn’t guaranteed (you have to qualify for it). I really look forward to earning the bonus and have to work pretty hard to get it. So why are bonuses taxed when I already have my regular salary chopped up? It’s pretty disheartening to see this small amount reduced after earning it.

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Anonymous 0 Comments

If you’re in the USA and you earn money by working for it (income) you have to pay taxes on that money. Either it’s your hourly wage or tips or a bonus, etc. If it’s income then you are required to pay taxes on it.

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