Basically, you got a $40,000 bonus, it doesn’t matter what you spent it on under the new tax rules. There was withholding on the bonus as there would be on any wages or bonus. Both the bonus and all the withholding should be included on your W-2. You won’t get the Social Security and Medicare with holding back because no one ever does. You will get credit for state and federal withholding when you prepare your tax return and if your overall withholding is more than your overall tax bill you will get a refund, just like in any other year.
