Yes, there could be a couple of things that cause that difference. First, the US tax system is progressive and marginal. That means only the income that falls in the tax bracket level is taxed at that percentage. Also, withholding for a bonus is typically 22%. The change in tax is based on the tax bracket the income is in. So even though you paid in at 22%, if your taxable income is in the 12% bracket that is what the change will be. Here is an example.
First, here is an excerpt from the 2022 tax brackets.
Income Tax
Not over $20,550 10% of the taxable income
Over $20,550 but not over $83,550 $2,055 plus 12% of the excess over $20,550
Assume your taxable income was 80,000 with a bonus of 6,400. The tax would be 2055 plus 7134 = 9189 Assume you paid in 10,589 withholding. Your refund would be 1400.
Once you gave the bonus back your income became 73,600 and the tax on that is 2055 + 6366 = 8421.
Withholding is still 10,589 so your refund is now 2168; the refund difference is 768 (which is 12% of 6400). Even though withholding for a bonus at 22% is 1408.
Additionally, your income level also affects the amount of some credits which may have been reduce at the lower income levels.
You should look at the forms to see what is actually happening with the changes. To view your forms in online versions use the steps below. For desktop versions use the "Forms Mode." LInes 15 - 33 are where you can find the tax and credit changes with and without the corrected W2.
1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu
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