<prompt> Human: My company has me on a project for the next year or so out of state. The contract includes an allowance for living expenses, etc. Per the contract I get 6650 in one lump sum payment each month which is adjusted up to make up for taxes so that I bring home 6650 per month in addition to my normal biweekly paychecks . After speaking with some coworkers, the allowance is treated as a bonus for the purpose of taxes. Im unsure how bonuses like this are taxed, is it the one time tax when you receive it? Or will I wind up owing more come January? Im a young guy with literally no tax deductions and my concern is that once tax season rolls around Im going to get hit hard. My gross pay including this allowance is going to look like Im making 200,000 when in reality, 40 of the allowance is taken out for taxes on top of which Im paying two rents in expensive cities and travel for myself back home a few times per month in addition to the costs Ive incurred moving here and will incur moving back. Id like to put away as much of this as I can and not get killed during tax season but Im not sure what I can do other than maxing out my 401k. Should I seek a professional financial advisor? And if so, how do I go about finding one I can trust? Ive spoken to a couple before and they always turn out to be trying to sell me some sort of insurance or leave me feeling very uncomfortable. Any help is much appreciated  <response>: Im a young guy with literally no tax deductions and my concern is that once tax season rolls around Im going to get hit hard.This is unlikely. Getting these lump sum bonus payments for only a portion of the year will cause you to be overwithheld. They will withhould a lot of income tax from these paychecks, more than you will actually owe. So this will result in a larger refund at tax time, not a larger balance due. Should I seek a professional financial advisor? Nope. Just google the IRS withholding calculator. One of the entries is how much bonus income you expect to have this entire year, and how much bonus withholding you expect to have which you can find from your last bonus pay stub. probably exactly 25 of the bonus amount If you fill it out correctly, I have a feeling it will actually say you will have too much withheld.Feel free to ask me any questions if you struggle with any of the inputs on the IRS withholding calculator. 