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emhitchco
New Member

Is there something we should file if we paid back a bonus check in 2022 that was taxed in 2021?

 
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Hal_Al
Level 15

Is there something we should file if we paid back a bonus check in 2022 that was taxed in 2021?

Q. Is there something we should file if we paid back a bonus check in 2022 that was taxed in 2021?

A. Simple answer: No. You do not file an amended 2021 tax return.

 

  Depending on the details, you may be able to claim a credit or deduction on your 2022 tax return.  If you have already filed your 2022 return, and did not claim anything, you can file an amended 2022 return*.  Wait for your original 2022 return to be fully processed (you get your refund).

 

This situation is described in IRS Publication 525.  If the amount is more than $3000, you can take a itemized deduction, on line 16  of schedule A (not subject to the old 2% of AGI rule) or  you can take a credit. The credit is computed by re-figuring the tax from the previous year as if the income had not been received. Then the difference in tax is claimed as a credit on the current year's return.  TT does not do the credit calculation or compare it to the alternate deduction. You have to do that manually.

For how to do that, see: 

  https://ttlc.intuit.com/community/unemployment-taxes/help/what-is-a-claim-of-right-repayment/00/2153...

 

*How to amend https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

 

 

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2 Replies
ee-ea
Level 15

Is there something we should file if we paid back a bonus check in 2022 that was taxed in 2021?

Hal_Al
Level 15

Is there something we should file if we paid back a bonus check in 2022 that was taxed in 2021?

Q. Is there something we should file if we paid back a bonus check in 2022 that was taxed in 2021?

A. Simple answer: No. You do not file an amended 2021 tax return.

 

  Depending on the details, you may be able to claim a credit or deduction on your 2022 tax return.  If you have already filed your 2022 return, and did not claim anything, you can file an amended 2022 return*.  Wait for your original 2022 return to be fully processed (you get your refund).

 

This situation is described in IRS Publication 525.  If the amount is more than $3000, you can take a itemized deduction, on line 16  of schedule A (not subject to the old 2% of AGI rule) or  you can take a credit. The credit is computed by re-figuring the tax from the previous year as if the income had not been received. Then the difference in tax is claimed as a credit on the current year's return.  TT does not do the credit calculation or compare it to the alternate deduction. You have to do that manually.

For how to do that, see: 

  https://ttlc.intuit.com/community/unemployment-taxes/help/what-is-a-claim-of-right-repayment/00/2153...

 

*How to amend https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

 

 

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