that w-2 is incorrect if it removed the $8K from wages and the $1760 from withholding since the wages were paid in 2022 and the repayment was in 2023.
IRC section 1341 controls
what they were supposed to do is issue a corrected w-2 for 2022 only reducing Medicare and Fica wages by the $8K and those related taxes. what you really repaid was the $8.000 gross wages less $612 in Fica and Medicare taxes for a net of $7388.
what you are supposed to do to reclaim the income taxes you paid on that $8K is recompute your income taxes for 2022 reducing taxable wages by $8000. that reduces your 2022 income taxes by $x. you claim the $X on your 2023 return. the decrease in taxes is taken as a credit on schedule 3 line 12d denote as IRC 1341
