Hey, I received a $7k relocation bonus ($10.9K pretax) when joining Amazon as an SDE in 2021. However, they require you to pay back this bonus prorated if you leave before 2 years of tenure. I quit after a little over a year in so I had to pay back around 42% of it in 2022. Weirdly they required I pay back the pretax amount and told me I had figure out how to get the tax money back when I file 2022 taxes, so it ended up being $4.6k that I paid back. Iām wondering if anyone knows where I enter this amount when I file. Iām thinking it counts as a claim of right repayment deduction, but just checking here if you guys know better. Thanks! Amazon TC: $152k New TC @ G: $233k #irs #tax #amazon
In simple terms: you overpaid. BUT, it is in record. So, whatever tax return you submit, you will get this tax payment noted, and it will be taken care of. That is how it has been for years. Good luck and, just to mention: this fella here is not your tax experts š
Non expert here but I was curious so I googled it. It is called Section 1341 Claim of Right in the tax return and since you paid back more then 3k you should be good. Here's an easy to follow guide https://www.cerebraltaxadvisors.com/blog/signing-bonuses-and-their-tax-implications/#:~:text=Generally%2C%20the%20employer%20will%20not,for%20the%20tax%20they%20paid.
Or this for a wider definition https://support.taxslayer.com/hc/en-us/articles/4410835849997-Repayment-Under-Claim-of-Right-IRC-1341
Walgreens: Does that apply for less than 3k? Same situation but I paid back 2.5k
My man, pay a few hundred bucks to get some real advice from a real accountant.
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I wouldnāt take tax advice from an anonymous app. Iād ask an accountant. The IRS is very unkind about mistakes and will do anything to get their money back if they can.