Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I started a new job in January. Part of the package was a sign on bonus, that was to be repaid if I left before one year. It now looks like I may do that. My question regards the amount to be repaid. A big chunk of the bonus was taken out as taxes. Do I have to repay the entire amount, or only the portion I received? If I have to pay the entire amount. do I get credit for the big chunk of taxes I paid on money I don't have? This seems like I'm getting the short end of the stick, if I have to pay back more than I got, and don't get credit for the taxes. Also, I'm not sure if this is the right place to be asking this question, or who I should ask (a lawyer? an accountant?) Any replies appreciated.
Print the post Back To Top
No. of Recommendations: 0
I started a new job in January. Part of the package was a sign on bonus, that was to be repaid if I left before one year. It now looks like I may do that. My question regards the amount to be repaid. A big chunk of the bonus was taken out as taxes. Do I have to repay the entire amount, or only the portion I received?

You will have to repay the gross amount received which will include the taxes withheld. If you received and repay the money in the same year, you will negate the tax liability 100%.

But if you repay in different calendar years, different rules apply depending on whether you repay more or less than $3000. See IRS Pub 525 for more information.
Print the post Back To Top
No. of Recommendations: 0
If I have to pay the entire amount. do I get credit for the big chunk of taxes I paid on money I don't have?

Yes. Your W-2 will show your wages without the bonus (paid and repaid) but will include the taxes withheld - those withholdings will either reduce the amount you owe in April 2002 or increase the refund you will receive.

Gail ~
Print the post Back To Top
No. of Recommendations: 0
Wow, that was fast. Thanks for the replies - looks liked I guessed right on where to ask :)
Print the post Back To Top
Advertisement