Timing for 1341 Claim of Right Filing: Can I claim it this year or do I have to wait until next year?

[alng22209]

I recently left a company I had joined at the end of last year (2021) and had to repay my gross signing bonus less FICA OASDI and HI. I was wondering if I could file a claim of right 1341 in my 2021 tax returns to recuperate the repayment loss in taxes or if I would have to wait to file a claim of right in my 2022 returns since I repaid my bonus this year. Below are some facts in my situation: 

• Joined the company in Sept 2021
• Received signing bonus (all taxed of course) in Oct 2021
• Departed firm in Jan 2022 (it was my decision to leave)
• Repaid gross bonus less FICA in Feb 2022 (over 3K loss to federal withholdings) 
• Can I file a claim of right (1341) for my 2021 taxes or do I have to wait until 2022 filing? 

My company did tell me that I would be receiving a W2C, however, I've heard from others that they don't really follow through with that process. Currently, I'm still unable to access their alumni portal. Appreciate any advice or help on this topic! 😊

[MinhT1]

If you only repaid your employer in 2022, you can only make the claim on your 2022 tax return.

If the repayment is more than $3,000, please read this TurboTax Help topic on how to make the claim.

[alng22209]

Thanks for the prompt reply @MinhT1! So would the only way to get the amount loss in federal withholdings for my signing bonus in my 2021 filings would be to get a W2C from my former employer before the tax filing deadline? Otherwise, I would have to file a Claim of Right 1341 next year for my 2022 returns? 

[DianeW777 · Accepted solution]

Yes, that is correct.  If your employer was willing to correct the W-2 by filing a W-2c this would be beneficial for you.  It's not likely this would happen if the repayment occurs in a different tax year. 

'If an employee quits the job and returns the bonus in the same year as it was received, then a request for a corrected W-2 from the employer to reflect the repayment of the bonus could occur.'

If the employer is not willing to do that, then you must use the Claim of Right 1341 in 2022 when the repayment is made. There are two options should this happen and the TurboTax CD/Download software will be needed for one of those options.  You can always ask a Tax Expert next year about questions you may have, and use the link provided by our awesome Tax Expert @MinhT1 and included here as well.

• What is a Claim of Right repayment?