Here’s one good reason to hold off on receiving your holiday bonus this year: It’s a move that can help you save on taxes.
Wall Street workers — that is, employees in the securities industry in New York City — received an average bonus of $184,220 in 2017, according to a report from the New York State Comptroller’s office. That reflects an increase of 17 percent from the prior year.
Year-end bonuses have been more modest for other workers.
The average anticipated holiday bonus was $1,797 last year, according to Accounting Principals’ online survey of 500 HR and hiring managers, taken in the fall of 2017.
It’s hard to say no to a year-end windfall, especially after all that holiday shopping, yet accountants warn that workers could get a tax bite if they don’t prepare.
“If there is an opportunity to defer, it pays to do so,” said Carolyn Mazzenga, a CPA and leader of the family wealth services group at Marcum LLP.
Here’s how your bonus could affect your tax bill.