Does my private bonus need to be taxed?

UPDATED: Oct 7, 2014

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Does my private bonus need to be taxed?

I work at an assisted/memory support place. The residents each year take up a collection for the staff for X-mas they write us a check out of an account set up for the residents. So it is not our payroll company that writes the check or gives us the bonus. This year they are talking about taking taxes out of our bonus. Can they do that? Seeing that it is not the company giving it to us.

Asked on October 7, 2014 under Business Law, Texas


Anne Brady / Law Office of Anne Brady

Answered 8 years ago | Contributor

That "bonus" money should not be taxed as it sounds more like a Christmas gift than anything else.  It is not coming from your employer, but from the residents.  There should be no tax withheld.  You do not need to report it as taxable income.

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