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Joe just received a $5,000 Christmas bonus from his employer on the first of December, bringing his total income up to $49,000 for the year.
Joe just received a $5,000 Christmas bonus from his employer on the first of December, bringing his total income up to $49,000 for the year. His marginal tax rate for federal income tax is 30%. His state income tax is 4% and the local income tax is 1%. The FICA tax rate is 8%. How much of the bonus will Joe have left over to spend on Christmas presents. That is, how much of that bonus does he get to keep?
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