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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18 Answers

Anonymous 0 Comments

I am not a tax person/cpa/whatever, but basically it’s because that’s income and the government wants their share. Why do you think the company should pay you but that money not be taxed?

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