AT&T, Walmart Bolster Their Tax Savings in Paying Worker Bonuses

Companies allowed to deduct bonus payments from taxable income
Accounting for expense in 2017 is ‘tax arbitrage,’ expert says

Employees restock shelves of school supplies at a Wal-Mart Stores Inc. location in Burbank, California, U.S.Photographer: Patrick T. Fallon/Bloomberg

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February 9, 2018 at 4:00 AM EST

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The surprise bonuses that corporations like Walmart Inc. and AT&T Inc. are bestowing upon rank-and-file American workers are currying favor with the public and President Donald Trump.

But there’s another perk -- the companies can use the payouts to minimize their tax bills.

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