Repaid Sign on Bonus In Following Year - W2C Issued with Updated Box 16
I joined a job in VA in 2021 and received a $10000 sign on bonus. In 2022, I left that job for another one and was asked to repay the sign on bonus. My company refunded the SS and Medicare taxes, meaning I only had to pay $9235 back.
They then issued me a 2021 W2C with the updated information - specifically, boxes 3, 4, 5, 6 and 16 were updated (SS wages, SS taxes withheld, Medicare wages, Medicare taxes withheld and state wages).
I've read elsewhere that the company cannot legally update box 16 and that I would have to wait until the current 2022 filing season for refund of the excess taxes paid (both federal and state) - as a result, I did not amend my 2021 taxes.
Should I still proceed with a claim of right in my 2022 taxes for federal and state income tax despite the W2C with Box 16 updated?
February 4, 2023
11:43 AM
