Bonus income cards can be used to reflect expected annual bonuses, either as a dollar amount or as a percentage of the client's income.
You can add bonus income into RightCapital within the Income section of the Profile (or the Income step of the initial data entry process), by clicking Add Income > Other > Bonus:
- For salaried individuals (Self-employed box unchecked), bonus income will be taxed as W2 income (Line 1 of the 1040). If the client is working a job that does not pay into Social Security, you can check the 'Exclude from SS tax' box to indicate that the salary is not subject to SS tax.
- For self-employed individuals (Self-employed box checked), bonus income will be taxed as Schedule C income (Line 3 of the Schedule 1, Line 8 of the 1040). If the 'Service Income' box is checked, this income will also be subject to the phase-out of the QBI deduction.
Bonuses can be tracked alongside a client's salary or self-employment income, within the Retirement > Cash Flows > Summary > Income Inflows column.
