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New Member
posted Jan 10, 2024 9:23:49 AM

Do I need to do anything differently with my tax return since receiving a bonus at work? It was a rather large bonus and more than half of it was reduced for tax.

I haven't received a bonus like this before and want to ensure I am getting back the correct amount. I was a bit disappointed to see how much was taken out of my actual pay due to taxes and was reassured I'd receive a portion back when I filed taxes, but I've ran through my return and it's the same I get every year. I feel a bit uneducated asking this question but just want to make sure I'm doing it right. My understanding is that the check that included the bonus was taxed so heavily because it moved me up to a different tax bracket where it looks like I make that much every paycheck and once I filed my return it would become obvious that I do not usually make that much and I'd get some of that bonus back.

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2 Replies
Level 15
Jan 10, 2024 9:28:02 AM

The bonus and the taxes withheld will be reported on the 2023 W-2 you receive from your employer.

Whether or not you will receive any tax refund is dependent on your taxable income, any tax credits you are eligible to received and your tax liability.

 

If your total tax payments are greater than your total tax liability then you will receive a tax refund for the overpayment.

If your total tax payments are less than your total tax liability you will have taxes owed.

Level 15
Jan 10, 2024 9:39:49 AM

Just file your tax return as usual.  Because the formula that the IRS requires for taxing a paycheck containing a bonus sometimes over-estimates the tax owed on the bonus, you may get a larger than normal tax refund this year.  Remember that the tax you owe for the year is only calculated on your tax return, and takes into account all your total income, credits, deductions and dependents.  If you paid more into the system via withholding or direct payments than you owe, whatever the excess is comes back as a tax refund.