What is adjusted gross income on w23/6/2024 ![]() There are other implications to reporting a larger AGI that can affect your tax return. Just like a cash bonus, these amounts get added to your normal wages or salary. And if your employer doesn’t give you a bonus in cash, they will still report the fair market value of it on the W-2.įor example, if your company rewards you for your dedication with a free vacation, your W-2 will reflect the cost of your airline ticket, hotel and all other expenses your vacation covers. In the eyes of the Internal Revenue Service, your bonus is no different than the salary you receive. When your employer provides you with a bonus, they will report it on your W-2 in box 1-but it’s combined with your normal wages or salary. This will inevitably increase your adjusted gross income, or AGI-which can potentially increase the amount of tax you owe. Unfortunately it isn’t, and you must include your bonuses on your tax return. You may be wondering if the bonus you receive at work is subject to special tax treatment. ![]() ![]() Hello, I’m Scott from TurboTax, with important news for taxpayers who receive bonuses from their employer.
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