Hi tax professional,
I started my job in 2019 and got a sign on bonus of 5000 (after tax, I got around 3000$).
However, in 2020 I changed my job and is required to payback the 5000 sign on bonus. The company deducted 1900$ from my last pay check (this 1900$ is before tax). Then I paid 3100$ out of pocket (this 3100$ is my after tax money).
Now, I am filing the tax return for 2020. In the W2 I got from my previous company, the 1900$ deducted from my last pay check were not shown in W2 (which I think should be correct). But how should I deal with the tax issues on my 3100$ as these are my after-tax income and I paid the company back? The company did nothing to reflect this 3100$ pay back on my W2.
