I retired in 2010 and have been collecting Social Security since 2012. My former employer had an incentive program whereby bonuses were paid out based upon estimated contract fee. However, there were contract disputes following my retirement, and completion of the contract, that were not resolved until recently. Once final reconciliation did occur, the company amended the previous bonus payout, whereupon I received an additional amount from the company. The company withheld FICA-SS and FICA-Med taxes from the final check.
Is that FICA withholding refundable or deductible in any way, or is it required, since the bonus is likely considered "earned income"?
