Every year, employees throughout the country receive a bonus from their employers. Whether it’s a little extra to celebrate the holidays or a reward for completing a specific project, your bonus shows your employer’s appreciation for your hard work. These bonuses are nice to receive, but you may find yourself asking “are bonuses included on my W-2?”. The short answer is yes, bonuses are taxable, meaning you must pay the corresponding taxes on them. So, how do you report a bonus on your taxes?
Keep reading to learn everything you need to know about filing a bonus on your tax return.