Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
volcanic1x
New Member

If I pay back a $20k signing bonus, do I get my taxes back on it?

If I take a job that has $20k signing bonus that has a 1-year payback penalty if I don't work there a year, then I end up leaving early. I have to pay it back. What happens with the taxes? Will I get back the ~$6,800 in taxes on my tax return, since that $20k income will be undone?

3 Replies
TomD8
Level 15

If I pay back a $20k signing bonus, do I get my taxes back on it?

See this previous TT answer:  https://ttlc.intuit.com/questions/3359139-my-story-is-last-year-i-joined-a-comp-and-they-gave-me-a-s...

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Hal_Al
Level 15

If I pay back a $20k signing bonus, do I get my taxes back on it?

Since the amount of the repayment, in question, is more than $3000, you will get all of the income tax paid, or close to all of it, back.
As you can see from the reference link, It's complicated as to how you get it back, but you do get it back.
bwa
Alumni
Alumni

If I pay back a $20k signing bonus, do I get my taxes back on it?

What you're asking about is a "Claim of Right" calculation on repayment of money you had a claim to. TurboTax on-line does not support the "claim of right" computation. TurboTax desktop, in the forms mode, permits the credit to be entered in the "smart worksheet" above line 72, but you still would need to compute it manually.


Dynamic AdsDynamic Ads
Privacy Settings
v