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Bonus repayment in subsequent year Deloitte

My signon bonus was 5000$ . I received 2500$ a week before i joined in 2019. For the remaining 2500$ , i received it along with my first pay check . My first regular pay was 1325$. I received my first payslip with the remaining bonus . My first payslip says 

Total earnings 6325$( including bonus)

total taxes 1718$.  

Net pay received as per first pay slip 2108$

 

Now i quit my company in jan 2020. So i had to repay the bonus 5000$ , including taxes.

I encashed my leaves for 2525$ and i deposited 2475$ electronically 

2475+2525 totalling 5000.

I received medicare and fica returns from my employer 3 months later for 270$.

 

Now my 2020 w2 says my total earnings in 2020 was 9000$ which includes my leave encashment of 3200$ before tax.

 

How do I claim the tax i paid for my bonus which i didnt earn ultimately.

Employer says they won't issue a corrected w2. I don't have the 5000$ reduction in income in the w2 as well.

 

Please advise how to proceed in this situation.

Met multiple tax consultants and no one gave a proper answer.

 

 

 

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1 Reply
MaryK4
Expert Alumni

Bonus repayment in subsequent year Deloitte

If you repay a bonus in the same year you receive it, you can reduce the amount of income included  by the repayment.  You will add in TurboTax as Miscellaneous Income using the steps below:

 

  • Under the Less Common Income section you should see Miscellaneous Income, 1099-A, 1099-C; select the Start option to the right.
  • On the next page choose  "Other income not already reported on a Form W-2 or Form 1099"
  • For the description, write Repayment of Signing Bonus and include the amount as a negative number.

Note: You do not make adjustments for the taxes you paid because the employer refunded you the Social Security/Medicare tax in cash and the other withholding is included on the W2.

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