Claiming credit for Returned Bonus at the same year

[TahaTax2018]

Hi,

I did receive bonus in 2022 that already taxed at payment time. However, as I changed my employer I had to return  prorated amount. The amount I did return was prorated after tax based on company calculations and they mentioned that they will not issue any corrected W2 or other form and I am responsible for its tax return. Now, Wondering How I can report it in online turbotax.

Appreciate any help.

[MinhT1]

This is a claim of right repayment. You can only report it in the year you actually repaid the claim.

If your repayment is less than $3,000, you'll claim it as a Miscellaneous itemized deduction in Schedule A.

If the repayment is more than $3,000, please read this TurboTax Help topic on how to make the claim.

[TahaTax2018]

Thank you, The after tax paid amount has to be entered, right?

[DaveF1006]

Yes, you will report the after tax amount paid.

[TahaTax2018]

Thanks, I followed and I added retuned after tax sign on bonus as repayment over 3000. However, after processing automatically Turbotax added this one as negative value as "Unemployment/paid family leave" in Wages&Income although I did not have such repayment and it was just sign on bonus. Is it Ok and I should leave it as it is?

[JamesG1]

No, 'unemployment/paid family leave' does not sound correct.

The claim of right repayment over $3,000 will be found on Schedule A Itemized Deductions line 16.

The claim of right repayment treatment qualifies if the original payment was made in one year and the repayment was made in a subsequent year.  

Is this what happened?

If the original income was received in 2021 and repaid in 2022, the claim of right treatment takes place on the 2022 Federal 1040 tax return.

If the original income was received in 2022 and repaid in 2023, the claim of right treatment takes place on the 2023 Federal 1040 tax return.

If the original income was received in 2022 and repaid in 2022, the claim of right treatment may not be used.

Follow these steps to report the repayment in TurboTax Online:

• Go to Federal / Deductions & Credits / Your tax breaks / Other Deductions and Credits / Other Deductible Expenses.
• Click Start / Revisit to the right.
• Proceed through the screens until you get to the Did you have any of these less common expenses? screen.  
•     If your repayment amount was $3,000 or less, answer Yes.  Otherwise, answer No.
•     On the next screen, Did you have any of these other expenses?, answer Yes if your repayment amount was over $3,000.
•     Report your repayment amount in the Claim of right repayment over $3,000 box, then select Continue at the bottom of the screen.

@TahaTax2018 

[TahaTax2018]

My scenario is "If the original income was received in 2021 and repaid in 2022, the claim of right treatment takes place on the 2022Federal 1040 tax return." I followed what you mentioned, but Turbo tax add negative of that value in Unemployment wage that seems not right. Any comment?