Hello,
- I joined a company in July 2020 and got a sign-on bonus, at the time of joining.
- I left the company in March 2021, before a year was up. Upon my departure, as part of the sign-on bonus agreement, I was asked by the company to pay back part of the sign-on bonus.
- I repaid the bonus clawback in Jun 2021.
- I have already filed my taxes for year 2020, but haven't gotten the refund yet because of IRS delays
How can I reclaim the difference in the tax I paid to IRS (roughly $5800) for the bonus. I can only think of two options:
1) File for an adjustment for my tax returns for 2020. But I haven't received a W2 adjustment from the company and not sure I will get one. Is this filed before I get my refund for 2020 or after?
2) File an adjustment when I do the taxes for year 2021, in 2022. I have heard of section 1341 credit. Is this relevant here?
My questions are:
1) What is your advice on which option I should pursue? Are there other options you recommend?
2) Will Turbo Tax help with filing of section 1341 credit? If so, what document do I need from the company?
Thanks in advance!
