@JJoli wrote:
Hello
i received a large sign on bonus in 2019 for a new job and I am thinking of leaving the job This year. I know I will need to repay back the sign on prorated and it would be over 3k. My question is.. if my employer does not give me a W2 for 2020 showing the repayment amount (since I’m not sure if they are federally/legally required to reflect the repayment amount)... would I still be able to claim that amount back on my year 2020 tax return? Thank you
Your best option is to ask your employer to reduce your remaining 2020 salary. You would then get a W-2 showing what you actually received in 2020, and your 2019 W-2 would show what you actually received in 2019, and no further adjustments would be needed.
If your employer will not reduce your salary, and you repay the money out of pocket, you can take either a claim of right credit, or a special itemized deduction, on your 2020 tax return. There should be plenty of information in the previous 5 pages of this discussion as to when you can or can't take the IRC 1341 credit versus the itemized deduction, although the exact procedure for claiming the credit will have to be re-checked when the IRS releases the 2020 tax return forms.
