Repayment and W2c

Forum|Forum|6 years ago
February 3, 2020
8 replies
52 views

Hello,

In 2019, I repaid a sign-on bonus that I received in 2018. The bonus in 2018 was $2,500. My former employer had me repay $2,308.75. This was the bonus minus social security and medicare withholding. I received a W2c with boxes 3,4,5,6 updated. IRS publication 525 has information on what to do for filing taxes for the year of repayment when repayment is over $3,000. I am unclear on what to do when repayment was less. Do I amend my 2018 filing minus the repayment amount?

Not A Product Question

CatinaT1

Level 15

Yes, it sounds like you will need to file a 2018 amendment and replace the original W2 with the corrected W2, the W2C.

You will need to print and mail the amendment.
Allow 8-12 weeks for processing.

See this TurboTax FAQ for help with amending.

You can check the status of your amended return here, but allow 3 weeks after filing for it to show up.

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imagineerAuthor

Level 2

Hi Catina,

I followed the amend instructions on TurboTax web app, and the refund calculator stayed at $0. My W2c was blank for box 1. When I use the original box 1, my box 1 is higher than box 3 & 5. I tried to leave box 1 blank like it is on my W2c but the TurboTax web app would not let me continue without filling in information. If my eligible social security/medicare wages decreased, wouldn't the 2018 AGI and tax burden decrease? I thought I'd get refunded the taxes I paid on the bonus.

Thank you

CatinaT1

Level 15

Some employers only put the corrected boxes on the W2C. You should have something in box 1-6, maybe something in box 12 and then your state information at the bottom. Use the numbers from the original W2 where they are blank on the W2C. Then you should have something in all those boxes.

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