Repayment of Signing Bonus in Subsequent Year. Need help with 2020 and 2021 Taxes

[brandonpearman]

I received a signing bonus of $20k in 2020.

I left in 2021 before the $20 k vested.

I repaid $18470 to my former employer and agreed not to seek the social security and medicare from the IRS.

I received a corrected w2c with only the following reduced:

social security wages

social security tax withheld

medicare wages and tips

medicare tax withheld

My wages were not decreased.

At this point how do I handle my 2020 and 2021 taxes?

Do I file a corrected 2020 tax form with only the 4 mentioned fields above corrected?

Do I address the $5000 in taxes I paid in year 2021?

Do I forfeit that $5k in taxes?  If that is that case, that is seriously messed up.

[Mike9241]

we can not see the effect if any, the changes in the items you mentioned would have on your 2020 return. in some cases, there may be changes that will result in an additional refund or you'll owe additional taxes. so you need to prepare an amended 2020 return making only the changes noted to the w-2 to see. if no changes then I would not file. 

since the payment occurred in 2020 and the repayment occurred in 2021 you have 2 options since the amount repaid (really for tax purpose $20k the net you repaid

Repayment

1) you can take as a deduction on Schedule A line 16 denote as IRC 1341 repayment OR
2) recompute the taxes FOR 2020 BY REDUCING BOX 1 WAGES BY $20k. The decrease in taxes is taken ON YOUR 2021 RETURN as a credit on schedule 3 line 12d denote as IRC 1341

[brandonpearman]

If I did option #1, would that be on my 2020 amended tax return or my 2021 taxes?

Also, after the changes in social security and medicare payments, I will owe $436 in taxes on my 2020 amended return.

[Mike9241]

option 1 is done on your 2021 return.

we can't see your return

on your 2020 return did you enter any payments made with the return or extension or any refunds received.

all you can do is look at 1040 lines 16 through 33 on the original return and compare it to the amended return to see what changed and then trace it back to any supporting schedule 

[brandonpearman]

I have to pay an additional $1240 in tax.  

I have also encountered a major glitch in the turbotax software when trying to amend.

It is trying to double tax me for my 1099-R.  Any idea who I can contact about this glitch?

As soon, as I start an amended tax return, even without entering any information,  I immediately see that I owe $374.  Again, I made absolutely no changes and am told that I immediately owe money on a tax return where no changes have been made.