Repay sign on bonus and how to attach letter from employer to confirm my returnning in turbo tax

[q524613205]

I was paid a sign bonus in 2016 and repaid it in 2017. I will claim the tax credit. I know I can do that in turbo tax. But how can I attach letter from employer confirm my return of signon bonus? It is a pdf format. I need to attach it on both Federal and CA state. 

[TaxGuyBill]

There is no need to attach anything.  If you repaid it in 2017, the repayment will not affect your 2016 tax return.  You will pay taxes on the full amount in 2016.  When you file your 2017 tax return, then come back and we can help you with reporting the repayment.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p17/ch12.html#en_US_2016_publink1000172015">https://www.irs.gov/pub...>

[tanykim]

Hi, it's the filing season, is there any update how to do it with Turbo Tax? I have an exactly situation. @TaxGuyBill

[TaxGuyBill]

I'm not good with the navigation in TurboTax, so it may be best to post a new question about HOW to enter it in TurboTax.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p17#en_US_2017_publink1000172015">https://www.irs.gov/publications/...>

[TomYoung]

The OP was asking a question that undoubtedly concerned a "claim of rights" issue, but since he wasn't asking about HOW to report a claim of rights - only asking about attaching a letter of explanation to an income tax return - I limited my answer to that issue.

As to how you go about reporting a claim of rights and taking a deduction or credit in the current tax year, this answer is directed to that question:

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3661571-in-2016-i-repaid-a-salary-amount-of-3-332-reported-as-inco...>

Just add "1" to the tax years being discussed there.

[TomYoung]

If you file by mail you can attach a copy of the letter, though it's questionable if the IRS even reads that stuff.

If you e-file you can't attach that letter.  Instead, you print out your income tax return, attach every single piece of supporting documentation to that income tax return, (W-2's, 1099's, that letter, etc., etc.), and put that income tax return in a safe place.  IF the IRS ever questions you about the repayment THEN you reply, describing what happened and attaching a copy of that letter as proof.  Heck, you could even attach a copy of the check you wrote.  That should be the end of it.

Tom Young

EDIT: I wasn't even thinking that you might be trying to report a 2017 transaction on a 2016 income tax return.  If that's the case then the above answer pertains to your 2017 tax year filing, not your 2016 tax year filing.