Hello
I had planned on filing a IRC 1341 credit with my 2021 taxes, next year, for the sign-on bonus repayment (see details below). However, my company sent me an email that they will be sending me a W2C in 6 weeks. I was surprised to learn this, given I was told by folks on this community that a W2C is not possible given the payment was made in 2021, not 2020 (the year the sign on bonus was given). Is my company mistaken? If W2C is sent, should I be filing an amendment this year or go with the IRC 1341 credit next year? Are both options available to me?
DETAILS:
- 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 and it has been accepted, but haven't gotten the refund yet because of IRS delays
I need to reclaim the difference in the tax I paid to IRS (*very roughly* $5800) for the bonus.
