Hi!
In April 2022, I received 12,000 sign on bonus. I left the job in October 2022. I repaid the net amount via miscellaneous payroll deduction on my last paycheck and a personal check issued for the balance. The company is not going to issue me a w2c. Way I’m looking at it, my gross income and taxes paid are overstated. I don’t see anywhere on my w-2 miscellaneous deduction being taken into consideration. Am I correct? What are the options to report this on my 2022 return (if any)?
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Your employer is supposed to make any adjustments to the gross income and taxes withheld on the final pay statement. I would make a written request to them for an itemized breakdown- if they made you pay they have to adjust your wages and deductions.
when was your last paycheck issued and when did you repay the balance? any repayment in 2022 should have been reflected on the W-2 while any repayment in 2023 is subject to reporting in 2023 if it qualifies. if your W-2 is incorrect contact your ex-employer again and if they refuse you'll have to contact the IRS (contacting the iRS is a necessary step). you can so inform them since the IRS will contact them to correct the W-2. you then may need to use form 4852 to report your wages and other items as you think they should be reported if you want to file on or before 4/18 or file an extension and wait for a corrected w-2.
IF YOU FILE USING FORM 4852 AN AMENDED RETURN WILL BE NECESSARY SHOULD CERTAIN ITEMS NOT AGREE WITH THE ACTUAL W-2c,
https://www.irs.gov/forms-pubs/about-form-4852
You must take the following steps before filing Form 4852
• Attempt to get your Form W-2, Form W-2c, or Form 1099-R (original or corrected) from your employer or payer before contacting the IRS or
filing Form 4852.
• If you don’t receive the missing or corrected form from your employer or payer by the end of February, you may call the IRS at
800-829-1040 for assistance. You must provide your name, address (including ZIP code), phone number, social security number, and dates of
employment. You must also provide your employer’s or payer’s name, address (including ZIP code), and phone number. The IRS will contact
your employer or payer and request the missing form. The IRS will also send you a Form 4852. If you don’t receive the missing form in
sufficient time to file your income tax return timely, you may use the Form 4852 that the IRS sent you to file with your return.
i answered below
Hi Mike!
Thank you for your support.
I reached out to my old company on March 10, 2023, to see if my W-2 will be corrected, but there is still no answer.
My last pay date was on 10/21/22 where the company took out -$5,856.09 via Other Miscellaneous deduction to zero out the net amount due to me. I also sent a personal check in October 22 for the remining amount of -$1,726.66 The company cashed out that check 12/28/22. In total between the two I repaid the net amount of what I received in April 22 ($7,582.75).
Would you say my W-2 is incorrect? When I add all payrolls including $12K gross bonus I received, I tie to W-2 which is why I think my W-2 is incorrect?
The bottom line is the amount paid back should not be reflected in your taxable income. The easiest solution is for the employer to correct the w2.
Another great solution is the 4582 as mentioned above.
Being a skeptic, I would probably file the w2 as is and subtract the income with a description of wages paid back or some such.
The IRS will probably ask questions and you can send proof that the money was repaid but showing in the w2 either way.
Option 3: Enter w2 as normal and subtract out repayment
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