1. Is it correct that I don't need to deal with SS and Medicare parts since the company has issued a W-2C and the amount I overpaid (i.e., $600) has been refunded to me (because I did not repay this amount)? Correct. Your employer is the one that will issue a refund for SS and Medicare overpayments. Since your employer has already taken care of it, there is nothing you need to do.
2. What's the right time of year to claim the overpaid federal and state taxes? The bonus repayment was completed in Mar 2023. I haven't filed my 2022 tax returns yet. Can I claim the overpaid federal and state taxes now, or should I wait till 2024 when filing 2023 tax returns? When you deduct the $7,900 from your income, this will lower your taxable income and result in a refund of the excess taxes withheld.
3. When deducting the repaid amount in "Deduction and Credits--Other Deductible Expenses" on Turbotax software, should I put the repaid amount of $7900 (the company stated in a letter) OR $7300 (the actual amount I paid, subtracting the $600 refund I received from SS and Medicare)? You will enter the $7,900. It is similar to your W2, your box 3 and 5, the wages are not reduced by the amount in box 4 and 6 from your federal amount.
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