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qwolf123
New Member

How does repayment of signing bonus work if the bonus is paid back in a different year?

The company paid me a signing bonus less tax withheld in 2018. I was asked to repay the entire signing bonus in 2019 and they said that they would provide a letter and I can claim the amount as a deduction in 2019 taxes. Will I recover all of the taxes withheld? What is the best course of action here?

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2 Replies
jtax
Level 10

How does repayment of signing bonus work if the bonus is paid back in a different year?

See if this other answer and the links it includes are helpful.

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jtax
Level 10

How does repayment of signing bonus work if the bonus is paid back in a different year?

Sorry I left out the link. Here it is:

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4521269-i-was-mistakenly-paid-4000-as-a-1099-by-the-state-in-2017-...>
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