Returning gross value of joining bonus - how to get IRS refund?4d
I received 10k joining/sign on bonus from a company in 2018 (gross 10k, tax 3.5k) I'm leaving in 2019, before the lock-in period ends. Contractually I'm required to repay the gross amount when I leave. So, I'm returning 10k from tax assessment year 2018, in tax assessment year 2019.
How do I get back the 3.5k from the IRS? Can I get it back sooner than April 2020? What do I need from the employer for this - assume employer is hostile and will not respond after I leave the place.
(not Microsoft, I joined another employer who I want to leave asap)
Have any of you done this in the past?
- Financial Engines / DatafrugalguyYou can to claim as income reduction in this year return. Some years go.. I did it.
- This will be part of this years tax assessment as you are returning it this year (doesnt matter which year it was paid, like how tax refunds work if you itemize) and it should show up on your w2. Basically it will reduce your income for this year, 2019.
- Hmm, what are you worried about? They legally have to issue you w2 so you’ll definitely get it no matter what.
What are you worried about?
- T-Mobile RelaxNGameYou have to return 6.5k. You need not worry about the tax adjustment for 2019, the x company will have to deal with it because they are the receiver.
- Jet.com / HRJD1234moreI think you just pay 6.5 to the company since that money is gone . Another thing is company will not bother for 10k sign on. Too much work for them. Since you almost worked for a year, they may not aksk for full amount..
- SAIC ibaouw6RelaxNGame is on point. You'll deal with it this year if your returning the money as part of a contract it'll reduce your income this year, just remember to track it. Also, to confirm how you should handle it you should ask the company your giving the money back how they will handle it... If they aren't providing you with an updated/corrected W2 then it's definitely not going to require you amend last year's filing.