Taxes on Lease Bonus

Texas Mineral Rights Reeves County, TX
1

How can I determine the taxes I will have to pay on a lease bonus?

2

You’ll add it to your income when you do your return. Plan on minimum whatever tax bracket you’re in now, but it might put you in a higher tax bracket. I’d definitely try to save extra and make an estimated payment before the end of the year if you can.

3

Thanks Lori.

What's the benefit of making an estimated payment?

4

I'm not a CPA or anything close, so don't rely on my advice. I'm just answering through experience. Estimated payments help avoid penalties that might be assessed when you file your return. This page at the IRS website I think will probably answer most of your questions:

http://www.irs.gov/businesses/small/article/0,,id=110413,00.html

If you received a substantial bonus amount, it would be a good idea to consult with a CPA to see how to handle taxes on the income.

Hope this helps!

Lori

5

Thank you, Lori!