Q&A of the Week December 14, 2022

Question

I received a bonus from my company. Do I need to report this as income on my 2022 tax return?

Answer

Yes. Bonuses are considered income and must be reported on your tax return. 

If you receive your bonus in 2022, it will be reported on your 2022 tax return. 

If you are told that you will receive a bonus in 2022 but actually receive the bonus in 2023, it will be reported on your 2023 tax return.

There are exceptions so please contact a tax professional. Here is an article that may help clarify: https://news.bloombergtax.com/tax-insights-and-commentary/figuring-tax-on-year-end-bonuses-gifts-and-perks-at-the-office