Probably not thinking about this right, but why do people say you’ll get a large return on your bonus come tax time? If your MAGI is in the 22% bracket, wouldn’t the standard withholding(22%) for your bonus be withheld correctly?

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When you get your bonus they will tax that paycheck assuming you make that much for each paycheck all year. So it’ll most likely get taxed at a much higher rate than your 22% rate (maybe the 32% bracket). Then when you do your taxes at the end of the year they’ll see that you really only earned in the 22% bracket and the bonus should have just been taxed at that bracket. And you’ll get the 10% back.

helpful

Agree with this

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