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Bonus / Supplemental wages

A $5,000 bonus on O-1 in Colorado nets you $3,298

Federal supplemental withholding (22%) plus FICA and Colorado supplemental withholding take $1,703 (34.05%) off the top of a $5,000 bonus check, leaving $3,298. Tax year 2026.

Withholding breakdown

Bonus (gross) $5,000
Federal supplemental withholding −$1,100
Social Security (6.2%) −$310
Medicare (1.45%) −$73
Colorado state withholding −$220
Net bonus check $3,298

Other bonus amounts in Colorado

$5,000 $10,000 $25,000 $50,000 $100,000 $250,000

Frequently asked questions

Specific to this visa, state, and salary. Sourced to IRS, SSA, and state DOR.

How is bonus pay taxed for O-1 holders in Colorado?
Bonuses are "supplemental wages" under IRS Pub 15. The federal employer withholds a flat 22% on bonuses up to $1,000,000 cumulative per year (37% on the portion above that). FICA (Social Security 6.2% + Medicare 1.45%) applies to bonuses for O-1 holders. Colorado has no separate supplemental rate; the calculator uses the regular state rate.
Why is so much withheld from my bonus?
Bonus withholding is a flat rate, not your marginal rate — by IRS rule, employers withhold federal supplemental at 22% (or 37% above $1M cumulative) regardless of your bracket. That can over-withhold for low earners and under-withhold for very high earners. Your actual tax is reconciled when you file your 1040 in April: see our annual take-home pages for the marginal-rate view.
Will the bonus push me into a higher tax bracket?
No — only the dollars above a bracket are taxed at the higher rate, and bonus withholding is a flat rate independent of brackets. The bonus increases your total annual income, which can shift your marginal bracket, but not retroactively re-tax earlier income.
Can a O-1 holder claim a bonus refund at tax time?
Yes — if the 22% federal flat withholding exceeds your marginal effective rate, the excess is refunded when you file. The opposite (under-withholding) requires owing at filing.

Sources

  1. IRS Pub 15 — Supplemental Wages (opens in new tab) — Federal flat 22% / 37% supplemental withholding rule.
  2. IRS Pub 15-T (2026) (opens in new tab) — Methods of federal income tax withholding.
  3. Colorado Department of Revenue (opens in new tab)