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Get your taxes done using TurboTax
Yes. You will get back part of your $6,000 in taxes as part of your 2020 income tax filing.
The entire $25,000 signing bonus will be included with your salary on your W-2. The $6,000 in taxes includes federal (and state) income tax withheld, plus Social Security (6.2%) and Medicare Tax (1.45%). You will not get back Social Security and Medicare.
The federal income tax withheld will be included in Box 2 of your W-2 (federal income tax withheld) along with withholding from your regular salary. Box 17 (state income tax) will include any state tax withheld as part of your bonus payment.
Your will be able to take a deduction or tax credit on your 2021 income tax return for amounts repaid in 2021 since your included that amount in income in 2020 but had to pay it back in 2021.
See Repayments.
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