I just filed my taxes (using TurboTax) and it turns out i owe taxes. I'm a second year analyst so last calendar year was my first full year of work (during which I received my bonus). The standard amount of taxes is already withheld from my paycheck (I claim no dependents and don't do anything special), and obviously my bonus was taxed at a very high rate. I don't understand how I end up owing a large amount of federal taxes (several grand). I this normal for a 2nd (and 3rd) year analyst? or did I screw something up?
If this is normal, why does this occur? You'd think that given bonuses are taxed at an artificially high rate (as if I earn that much on every pay check), should i be getting refunds as opposed to owing more?
Thanks in advance for any insights.