From TaxAlmanac, A Free Online Resource
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Re-Payment of Income
Cttax (talk|edits) said:
| 20 February 2007
|
| Taxpayer received a sign on bonus of $15000 (included in W-2) & paid back $12000 of it in the same year. How is that handled? I know what to do if he received it in a prior year(claim of right repayment) but not in the same year.
|
NANCYSHOEMAKE (talk|edits) said:
| 20 February 2007
|
| My understanding is that the repayment would be under miscellaneous itemized deductions. I know this is the case when unemployment is received in one year yet repaid in the second year.
|
Cttax (talk|edits) said:
| 20 February 2007
|
| Thanks. Yes that is over 2 different years, in this case it happended in the same year.
|
Riley2 (talk|edits) said:
| 20 February 2007
|
| The $12,000 should have been netted against the $15,000 on the W-2 form.
|
Cttax (talk|edits) said:
| 21 February 2007
|
| Riley2........Thanks but it wasn't netted on the W-2. He paid the money back after he left the company but in the same year.
|
Cttax (talk|edits) said:
| 21 February 2007
|
| Thanks for your help everybody. Getting a corrected W-2 seems to be out of the question. He left the company not on good terms. The money paid back was a signing bonus. I'm tempted to adjust his wages by the amount he paid back with an explanation/attachment? Anyone else have any ideas?
|
Riley2 (talk|edits) said:
| 21 February 2007
|
| CTtax, although the proper treatment is to reduce W-2 wages, to avoid matching problems, I suggest making a negative entry on the misc income line of the 1040.
|
Cttax (talk|edits) said:
| 21 February 2007
|
| Riley2. Thanks, that's probably what I am going to do. That would also take care of the problem with the state (MA) tax return also.
|
To join in on this discussion, you must first
log in.
