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Neeraj2
New Member

I had to pay back 24K from a 50K signing bonus because I quit my previous job after 1 year and before 2. Can I claim this deduction?

 
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DMarkM1
Employee Tax Expert

I had to pay back 24K from a 50K signing bonus because I quit my previous job after 1 year and before 2. Can I claim this deduction?

You may be able to get at least part of the tax paid refunded.  Here is a link to Publication 525.  See pages 34-35 about how to handle a repayment.  You must re-figure your taxes for the prior year without the bonus income and compare that to the taxes in the current year without the bonus.  You may be able to use either a deduction in the current year (if the amount repaid is over $3000) or a credit.      

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DMarkM1
Employee Tax Expert

I had to pay back 24K from a 50K signing bonus because I quit my previous job after 1 year and before 2. Can I claim this deduction?

You may be able to get at least part of the tax paid refunded.  Here is a link to Publication 525.  See pages 34-35 about how to handle a repayment.  You must re-figure your taxes for the prior year without the bonus income and compare that to the taxes in the current year without the bonus.  You may be able to use either a deduction in the current year (if the amount repaid is over $3000) or a credit.      

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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