Home > Bonuses, Refunds and Taxes....(oh my!)

Bonuses, Refunds and Taxes....(oh my!)

February 4th, 2022 at 06:38 pm

My company has been in the industry news for the past few days.  Apparently we blew past our 2021 financial goals, and all of our employees (about 80k worldwide!) are getting a bonus.  I don't normally get bonuses, and actually don't think I have ever gotten one, so this is exciting.  Upon digging into it, and finally watching the video our CEO sent out the other day, it appears we are each getting a week's salary as a bonus.  That's slightly less exciting lol....for me, it's about $2200 after taxes, so not terribly much.  However, it is still extra money, that I can definitely use right now.

I got an email from my 401k provider yesterday, stating that they were sending a refund for the overpayment on the loan I just paid off, sent via ACH to my bank account on file.  It didn't have an amount specified, but I got a text from my bank this morning that a direct deposit of $148.98 had posted.  That's the amount that was deducted from my last paycheck for that loan, so I think I am probably ok to go ahead and increase my 401k contribution percentage......but I'm still gonna wait til the 15th to make sure.  I can certainly manage it if there's an overlap but I'd rather not.

Taxes are still chugging along.  I have gotten more than half of the documents needed now....sadly, the only ones outstanding are going to send my numbers in the wrong direction.  At this point, I will owe both state and federal, thanks to the combination of a lot of debt being cancelled last year as well as earning a few thousand in bank bonuses.  Hoping for my total tax bill to be under $2k (guess that bonus will come in handy lol).  I obviously won't file/pay until the deadline if I owe, but my taxes should be done long before that so I will have about 2 months to put together the money.  Thankfully, it'll be a one time aberration - I am used to receiving a refund and prefer it that way.   My paychecks withhold more than enough tax to cover them, it's just these outside of normal pay events that got me.  Even though I'm feeling the squeeze right now, having settled the debt saved me far more money than I have to pay in extra taxes, which helps to put in perspective.  I'd rather be able to use the bonus and all of the other little dribs and drabs coming in over the next few months to be able to pay down more debt, but I guess I'll hold in favor of the tax payment.  All in all, if this tax bill had come last year, I would not have been in such a position, and it would have been a real hardship to pay the bill.  So for that I'm grateful.  My choices this year are to raid savings or forego debt payoff acceleration.  Last year, I would have had to go into more debt to handle it.  Progress is always good, and recognizing it is even better.  

1 Responses to “Bonuses, Refunds and Taxes....(oh my!)”

  1. rob62521 Says:

    I guess any bonus is better than any bonus. I'm sure you'll put it to good use. We are hoping our taxes aren't a nightmare. We have to wait until the middle of March for one document...they usually send a letter stating they have to wait until then. I wish instead of sending the letter, they'd use the manpower to get the document ready sooner.

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