Hi @Mike9241, thanks a lot for providing this information!
My total compensation for 2022 is less than the $147,000 limit of 2022 for maximum taxable earnings for Social Security taxes, so the full $30,000 should be eligible for refund. Boxes 1,3,5 are all the same for my W-2s of 2022.
I understand the 2 options for adjusting this repayment on my 2023 tax return (deduction on Schedule A or credit on Schedule 3). However, I am wondering if I should include Medicare and Social Security in these calculations and still be eligible to file Form 843. So, the taxes on the $30,000 for 2022 are:
Medicare (@1.45%): $435
Social Security (@6.2%): $1860
for a total of Medicare + Social Security = $2295
That said, if I plan to file Form 843 for $2295
- Can I still claim $30,000 as a deduction in Schedule A or I can only claim $30,000 - $2295 = $27,705?
- Same question for the option of a tax credit in Schedule 3. When computing what my income would be without the $30K bonus, should I subtract $30,000 or $27,705 from Box 1 of W-2?
