Deductions & credits


@sockswithsandals wrote:

So, they issued me a full W2 for my wages. Nowhere, on there is the Repayment reflected. Does that mean that I need to ask for a corrected W2?

If they don't issue me a corrected W2, can I still claim the repayment of bonus on my taxes as I have proof of repayment made through a personal check?


The answer was given in detail above.  The employer is not required to give you a corrected W-2; your W-2 accurately reflects the wages you were paid.

 

You can recover the federal income tax on the repaid bonus by making a claim of right credit under IRC 1341 or taking the special claim of right tax deduction.  You can recover the state income tax on the bonus by taking a claim of right deduction on your state tax return.  You can try and recover social security and medicare tax on the repaid bonus using form 843, although the actual recovery you might be entitled to will depend on your total income from all your jobs for the year you received the bonus, and you will need a letter from your former employer stating that they will not be making any adjustments to your social security or medicare tax.