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Get your taxes done using TurboTax
If the repayment did occur in the same year you received the bonus as you state, then try to obtain the corrected W-2 as you indicate. If you do not receive a corrected W-2, you should not adjust the box 1 wages. Instead see the instructions below to remove the income from your return.
If you cannot get a corrected W-2, then you can adjust the wages for the repayment in another way. Keep all the proof documentation showing both the receipt and repayment in the same tax year.
Follow these steps to complete the action of removing this income from your return.
- Scroll down the page to the last section titled: Less common Income and click show more;
- Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
- Scroll down to the last option titled Other reportable income and select start or edit;
- When it asks, "Any other reportable income?" say yes then you will make one entry
- Enter this description: Bonus Repayment excludable income and enter amount as a Negative (-7,500) number
DO NOT USE IRC 1341 if the repayment occurs in same tax year that you received the money.
If you do not receive the reimbursement of social security and medicare taxes from your employer, then you can use Form 843 as indicated by Opus17, earlier in this thread.
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