If the bonus was repaid the same year, there would be little issue since the income for that year would be reduced by the amount of the repayment.
When the payment and repayment occur in different years, it gets a little more complicated.
First, you won't amend or adjust your 2023 Tax Year return, because you DID receive that income.
Next, if the repayment was 3,000 or less, you could have only reported that on Schedule A on the tax return for the year it was repaid, HOWEVER claiming Miscellaneous Itemized Deductions was eliminated in 2017. If the repayment was 3,000 or less, you won't be able to adjust the income or get a refund of the tax you paid on that income.
If the repayment was more than 3,000, you can use the second option of claiming a tax credit on your Federal Return for the tax paid on that income. This is referred to as "Claim of Right Repayment Credit".
This credit will be claimed next year when you file your 2024 Tax Year return.
How the credit is calculated is as follows:
After you file your 2023 return, make a new 2023 return, or adjust the one you have changing the income to reflect the repayment (as if that income was never received in the first place) and compare your "adjusted" tax liability to your true tax liability.
If the tax is less after the adjustment, the difference in tax is the credit you will claim next year.
Be sure you "un-adjust" the 2023 return to reflect the real return you filed.
Note- You will need to use TurboTax Desktop the year the credit is taken.
HERE IS THE LINK TO DETAILED INSTRUCTIONS AND STEPS
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