On 12/31/20 my employer accidentally paid me a discretionary bonus of $16,625 (gross) that I should not have received, along with my regular wages on the same paycheck. On 2/21/21 I repaid $10,555.64 which was my employer's best estimate of the net bonus amount I had received after taxes.
My employer uses Tri-Net as a benefits platform, and Tri-Net issued me a W-2c with my Medicare wages reduced by only $10,710.95, not the gross overpayment of $16,625. In my mind, I have still overpaid taxes on $5,914.05 in reported income due to my employer's error. Can I make a Claim of Right on my 2020 taxes (I have not yet filed) or will I need to wait for 2021 filing?
I file married jointly and was planning to take the standard deduction in 2020 (before this issue).
Thank you!
