Tax Refund after Relocation Bonus Repayment

[noorie]

I received a relocation bonus in Aug'24 of about $4.5k (~$7k grossed up with taxes). I repaid the entire $7k in Jan'25 (resigned Dec'24) as I left the company in less than one year. I have received a corrected W2 with reduced earnings ($x-$7k) and tax withholdings ($y-2.5k). I am currently in the process of filing my 2024 tax return. Is there any way I can get a refund on excess taxes paid via this filing? Or would I need to wait for the next tax year (filed 2026) and attach a 'right of claim' or IRC 1341? Any clarity on this process would be highly appreciated. 

Follow ups,

1. Are there nuances to refunds on Medicare and Social Security, i.e., should I request these refunds from my former employer or the IRS via form 843? Should I do this now as part of the 2024 tax filing or the next year? 

2. How do I handle my Illinois taxes for the same situation?

[SusanY1]

If your employer corrected the W-2 to reflect the repayment, then you just file with that W-2 and don't need to make any other adjustments.  

The employer should have made adjustments to the social security withholding for you automatically, and if the withholding remains for federal (as it likely does) your reduced income (Box 1 on the W2 for federal and 16 for your state) should reflect in the form of less tax due or a higher refund for you. 

This will also carry through to your state return.