I started a job in May 2017 and was awarded an $8K signing bonus but only received $4.5K after taxes. I left the job in September 2017 and was asked to repay the full $8K, meaning $3.5K was paid out of pocket. Since it was done the same year, I don't think that I can do a "claim of right repayment".
My current W-2 shows the $8K as part of my wages (Box 1). Should that $8K be part of my wages if I paid it back? I contacted my employer about getting a corrected W-2 and they said they were unsure and would get back to me.
I also read somewhere that they should file a 941. If this is the case, how does that affect my taxes?
Will I receive my out of pocket $3.5K back?
Please help.
