since the amounts were repaid in 2024 and the repayment was more than $3,000 you
can take as a deduction on the 2024 schedule A line 16 denote as IRC 1341 repayment OR
recompute the taxes in the year you received the payment by excluding the payment.
the decrease in taxes is taken as a credit on 2024 schedule 3 line 13b (?)
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The payment for the 2022 clawback was on a gross basis (so I paid my employer 100% of gross bonus)
this would be correct provided no social security or medicare taxes were taken out.
as to federal, state and local withholding, that was claimed as a credit against taxes 2022, so you got the benefit in that year either as owing less or getting a refund
You can’t claim a deduction or a credit for the payroll taxes on your income tax return (Social Security/Medicare taxes withheld). If an employer refuses to refund payroll taxes, employees can file a claim for refund using Form 843.
form 843 requirments
Refund of excess social security, Medicare, or RRTA tax. If
you are claiming a refund of excess social security, Medicare, or
RRTA tax withheld by one employer, you must, if possible,
attach a statement from the employer. The statement should
indicate the folowing
- any, the employer has repaid or reimbursed
you for excess taxes withheld.
• The amount, if any, of credit or refund claimed by the
employer or authorized by you to be claimed by the employer.
The employer should include in the statement the fact that it is
made in support of your claim for refund of employee tax paid by
the employer to the IRS.
If you cannot obtain a statement from the employer, you
should attach a statement with the same information to the best
of your knowledge and belief and include in the statement an
explanation of why you could not obtain a statement from the
employer. Attach a copy of your Form W-2 to prove the amount
of social security, Medicare, or RRTA tax withheld.
2024 is the same rule but you use the gross amount of the bonus and there is no 843 to file.
your employer should file corrected w-2s only if needed to correct the social security and medicare wages. you do not file amended returns for 2022 or 2023.
can't help with NY since I don't know their rules
