Signing Bonus Repayment in subsequent year but before the tax deadline. Deduct from income?

[kentuk]

Hello! I am repaying a 2023 signing bonus of $35,000 this month ( Feb 2024), of which around $15,000 was taxes. I have yet to do my 2023 taxes and my former employer will not issue a corrected W2 for 2023. Can I deduct the $35000 from my 2023 income since I have yet to file those taxes or do I have to wait until I file my 2024 taxes to claim a tax credit?

[rjs]

You have to claim the credit or deduction for the repayment on your 2024 tax return because the repayment occurred in 2024. You can't adjust your 2023 income to account for something that happens in 2024. You have to report the full amount of income that you received in 2023, and report the repayment in the year that you pay it. It doesn't matter if you repay it before or after you file your 2023 tax return. What matters is the year in which the transaction actually occurs.