paying back sign on bonus

[shubham-123]

@ThomasM125 Thanks for your reply. So, the boxes I mentioned for it are correct?

[ThomasM125]

Yes, the boxes you mention would be correct. Also, you should enter .062 times the amount in box 3 for the social security tax and enter that in box 4, and then multiply your wages in box 5 times .0145 and enter that amount in box 6 for medicare tax withheld. It probably won't change anything, but just to be sure you should do that.  @shubham-123

[shubham-123]

Thanks for your reply @ThomasM125 

But Box 1, 3 and 5 in W2 sounds good to be reduced, right? Or do I just need to remove it from Federal wages and not from Social and Medicare wages? If I see here: https://www.irs.gov/publications/p525#en_US_2022_publink[phone number removed], there is something mentioned about the Repaid wages subject to social security and medicare taxes but I am not super clear on it. 

Can you please help explain and which boxes I should reduce the repaid amount from? Thank you so much for your help. 

[DianeW777]

Yes, you can just change the wages in Box 1 of your W2 for the year the original wages were reported. This will calculate what the original tax would have been before any repayment. This will help you calculate the credit you would be entitled to under 'Claim of Right'.  Generally, Box 3 and 5 will not alter your tax return in any way because the social security and medicare taxes do not affect your tax return.

@shubham-123 

[MysterySapien]

Here is the link to TurboTax article which makes it easier: https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/claim-right-repayment/L0aW5v3Tp...