Short version: In 2021, I had to repay my employer part of my sign-on bonus that I was granted in 2020. As a result I overpaid my NY state taxes for the tax year of 2020. I have been told I need to claim a "IRC 1341 credit" when I file the taxes for 2021, in 2022. If so, how do I adjust my NY state taxes? Do I need Turbo Tax Desktop for this or will Turbo Tax Online do it for me? Or is this too complicated that it warrants a in-person CPA help?
- in Jun 2021. I am not sure if I will get an adjusted W2 from the company or not.
- I have already filed my taxes for year 2020, but haven't gotten the refund yet because of IRS delays
you will not get a corrected W-2 because you did not make the repayment in 2020.
how much did you repay? if $3,000 or less there is no deduction or credit available. if more than $3,000, then in 2021 when you made the repayment, you can take as a deduction on schedule A line 16 denote as IRC 1341 repayment
OR
recompute the taxes in 2020 by excluding the amount of repaid wages from line 1 of the w-2
the decrease in taxes is taken as a credit on schedule 3 line 12d denote as IRC 1341 on your 2021 return.
see this link for instructions on computing credit
https://ttlc.intuit.com/community/unemployment-taxes/help/what-is-a-claim-of-right-repayment/00/2153...
