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You simply enter your W-2 exactly as it appears. Your bonus income was added as taxable income to your W-2---which is what it is. If you did not have enough tax withheld from your income during the year, you might have a smaller refund or you might owe tax due. Not sure what prompted you to say you were "exempt" from withholding on a bonus. Bonus money is not exempt from income tax. The software will do all the calculations and reconcile whether you are getting a refund or if you owe.
Yes, you need to report your bonus. Enter your W-2 exactly as you see it. Don't change anything or delete amounts from any boxes. Even though you claimed exempt for your bonus so your employer wouldn't take tax out of it, it's still taxable income, which is why it's included in box 1 of your W2.
Refer to the TurboTax article How Bonuses Are Taxed for more information.
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