Gift Tax bonus on Annual pack check? Is there a standard?

[dhahlen]

Arizona

My wife is receiving a bonus this year, 14.9% of her annual pay. I believe gift tax is 45%? Is that correct? Just trying to find an estimate of what she'll be receiving. I guess it is somewhere near 50% so I figured that's a safe bet....

How is this tax determined? By employer? Your tax bracket? Your with holding status?

Any input would be great.

 

[efflandt]

Is this the first time she got a bonus? It may seem like a gift, but a bonus resulting from working is earned income, and taxed at whatever tax bracket it puts her into with the rest of her income (and yours, depending upon how you file). Unless she elected to not have withholding from it (or it is 1099 income), tax should be withheld from it and it will be included on her 2008 W-2. If she contributes to a 401k or other employer retirement plan, that may also be deducted from it. So the check might still end up significantly less than her gross bonus.

Payment from an employer is technically NOT a gift and not subject to gift tax. BTW, a gift giver is reponsible for gift tax, not the receiver.