@alsr71 wrote:
@Opus 17 , I have a similar situation. I got a sign-up bonus last year and left the company before the end of the year. I paid back the amount that was not taxed. The company did not return Social Security or Medicare and they are refusing to send a W-2C.
They are saying "Repayment obligations to """""" existed independent of the ability to successfully recoup taxes on repayments from the taxing authorities. I am very sorry but there is nothing """""" can provide".
Is the company required to provide this per IRS guidelines?
Your W-2 reflects the wages you were actually paid. If you and the company had agreed to withhold your final paychecks to account for the bonus, then your W-2 would reflect the net pay and you would not have a repayment situation. However, if they paid your full salary, and you repaid them the bonus separately, then the W-2 is correct and can't be changed, and you handle the repayment issue via a claim of right credit or special tax deduction.
The claim of right credit will take care of the federal income tax. There is probably a similar credit for your state tax return, but I: don't know the laws of all the states, you will need to do some research. To get a refund of social security and medicare tax on the bonus, you will need to file a form 843 with the IRS. This is not part of your income tax return and can be filed at any time. You will likely need a letter from the company confirming that they will not be issuing a refund of social security or medicare taxes directly to you.
