Get excited if your line of work is one that issues year-end bonuses, but not too excited because you should remember that bonuses — just like income — are still taxable.

Wealth host Brad Smith explains the process and specifics for taxing bonuses and ways to reduce the tax dent, such as contributing the sum to your IRA, 401(k), or Health Savings Accounts (HSA).

To watch more expert insights and analysis on the latest market action, check out more Wealth here.

This post was written by Luke Carberry Mogan.