I have been reading with interest all the sign-on bonus questions, but have not come across one that is like my situation:

I started a position last February ('06) and was issued a sign on bonus of $10,000 (net ~ $6200). I left the position in September and was asked to return only the $6200. The company, however, left the $10,000 as part of my reported income on my W2.

Am I able to deduct the $6200 or claim a tax credit for the 2006 tax year? If so, under which category? Miscellaneous?

Many thanks in advance from someone completely confused.

Mike

Mike:

If you returned the money, it SHOULD be reflected on your W-2.

Go back to your old employer and have them adjust it, issuing you a W-2C.