Bonus Tax Rate Calculator
It’s important to know exactly how much your bonus check will be after federal withholding and social security taxes are taken out in order to budget accurately.
Wondering if you should spend this extra money, save it for the future, or use it to pay off debts? According to a recent poll conducted by ACCC, 83 percent of respondents reported that they think it is more important to pay off credit card debt rather than invest in a savings account. The poll also found that 58 percent of respondents don’t regularly contribute to a savings account. For a full breakdown of the results and more information about paying off credit card debt versus saving for the future, check out the infographic here.
While it may seem tempting to go out and treat yourself to a shopping spree with your bonus check, keep the 10-second rule in mind. Other considerations for your bonus check are a deposit to your emergency fund (to learn how to start and regularly contribute to an emergency fund, checkout this article) or a deposit to your saving for a goal fund.