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Get your taxes done using TurboTax
No that is not correct. All payments received from employer should be on the Form W-2.
While bonuses are subject to income taxes, they don't simply get added to your income and taxed at your top marginal tax rate. Instead, your bonus counts as supplemental income and is subject to federal withholding at a 22% flat rate.
Follow these steps to enter the bonus. The first few steps might vary a bit in TurboTax Online, depending on what you have already done.
- On the left side click Federal.
- Click Wages & Income.
- Click "I'll choose what I work on" or "Jump to a full list."
- On the screen "Your 2021 Income Summary," scroll all the way down to the last section "Less Common Income." Click the Start button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
- On the next screen click the Start button for "Other income not already reported on a Form W-2 or Form 1099."
- The next screen asks "Did you receive any other wages?" Select Yes and click Continue.
- The next two screens ask about household employee wages and sick or disability pay. Click Continue on these two screens without entering anything.
- The next screen asks "Did you earn any other wages?" Select Yes and click Continue.
- The next screen asks the source of the other earned income. Select "Employee compensation that was not reported on a W-2." Click Continue. Ignore the note that says not to enter payments for which you will receive a 1099.
- On the next screen, "Employee Compensation Not Reported on a W-2," click Continue.
- If you are filing a joint return, you will get a screen asking which one of you the income is for. Select your name and click Continue.
- On the next screen, "Report Your Wage Income," enter the employer's name and EIN from your W-2. For Total Wages Received, enter the amount of the bonus. For the Reason Code select "H - I received a Form W-2 and a separate Form 1099-MISC and/or 1099-NEC and the income should have been reported on Form W-2." Click Continue.
- Read the next screen, "Report as Wages," and click Done.
Wages, any bonuses, prizes, and awards paid to employees (report these on Form W-2). IRS - see page 9
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March 28, 2022
2:36 PM