My granddaughter received a sign-up bonus the end of last year and of course received a W-2. She never cashed the check and is going to return it. Does she still need to claim it? Or can she get the W-2 voided?
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No, it isn't likely the payer will withdraw the W-2 if she's had the check available to her since 2023.
That being said, she can contact them and ask them to take the amount back and correct her W-2, but they don't have to.
When you pay someone wages, the amount is reported as paid when the amount is made available to the worker. It doesn't matter whether they cash the check or not.
Most likely you will need to report the W-2 with the bonus for 2023 and if the amount is repaid in 2024, it'd be reported as repaid wages. Follow this link for more about repaid wages and claim of right.
No, it isn't likely the payer will withdraw the W-2 if she's had the check available to her since 2023.
That being said, she can contact them and ask them to take the amount back and correct her W-2, but they don't have to.
When you pay someone wages, the amount is reported as paid when the amount is made available to the worker. It doesn't matter whether they cash the check or not.
Most likely you will need to report the W-2 with the bonus for 2023 and if the amount is repaid in 2024, it'd be reported as repaid wages. Follow this link for more about repaid wages and claim of right.
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