I started working in July 04 (was in college before then). I received a signon bonus from my company, before I started work. Hence, I was not taxed on it before starting. I was supposed to have been after I started working, but that never happened. So I know for this return I should be paying taxes on that bonus.

My bonus was included in the wages amount of the w-2, with my salary. However, whenever I do the federal tax returns (Form 1040), via turbo tax online, or manually or any other method, I always end up with a refund, even though I know I should be paying a substantial amount in taxes. I have been putting the wages amount on the 1040 form, subtracted the deductions, etc.
Same problem with the state (NJ) form. I'm very confused :(

Any idea why this is happening? Should I be reporting the bonus amount elsewhere on the tax form?

Also, how is the bonus taxed? At what percentage rate?

Any help will be very much appreciated.