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Repayment of Sign On Bonus
I was awarded a sign-on bonus in January 2022 for $5,000 with a minimum 12-month employment clause. I left the company in August due to an unplanned residence relocation. Per the Agreement, I paid back in December 2022 the bonus in the amount of $4617.50 which I believe is the amount less FICA/Medicare tax already paid [NOTE: My employer determined the amount of the repayment that had to occur]. My 2022 W2 from this employer does not reflect the repayment amount and they are not going to issue a corrected W2. Is my understanding correct that I will complete a credit for repayment in the amount of $4618 through the Claim of Rights IRC 1341 on my 2022 taxes since the award/repayment both happened in the same tax year?
‎January 19, 2023
8:11 AM