@esreinfurt - bonuses are taxed just like the rest of your earnings - it is 'ordinary income'
But don't confuse 'withholdings' with 'tax'.... they are different. The IRS requires companies to WITHHOLD 22% of the bonus, but the actual TAX is based on your tax bracket.
So if you are in a 12% tax bracket that would suggest a big refund in April, if you are in a 28% tax bracket, not enough was withheld and that would suggest a smaller refund or owing comes April.
The reason we all do taxes each April is to 'settle up' the tax that is calculated LESS what is withheld during the year - that results in either a refund or more money due.
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