Ask Experts Questions for FREE Help !
Ask
    thumbsup's Avatar
    thumbsup Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 12, 2006, 11:38 AM
    Sign-on bonus question
    I had received a sign-on bonus last year, so it appeared as an income last year and I have paid taxes on it. As I did not complete one year with the company I had to return my sign-on bonus this year. How do I claim already paid taxes?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 12, 2006, 06:36 PM
    You should get a credit against your 2006 salary for the returned bonus. Make sure your company's accounting department gives you that credit and refunds the withheld taxes.
    klaughlin's Avatar
    klaughlin Posts: 2, Reputation: 1
    New Member
    		  
    #3

    May 30, 2007, 06:34 PM
    Quote Originally Posted by AtlantaTaxExpert
    You should get a credit against your 2006 salary for the returned bonus. Make sure your company's accounting department gives you that credit and refunds the withheld taxes.
    Why would the refund come from the company when the taxes were paid to the federal/state (although withheld by the company)? Wouldn't the company say that I would need to claim a credit in the subsequent year's taxes?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jun 3, 2007, 04:38 PM
    The company eventually WILL get a refund from the federal government, but YOU are entitled to a share of that refund.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Return Sign-on bonus [ 5 Answers ]

Hi My employer paid me a sign-on bonus of $5K two months ago when I joined them. The employment contract says that I should return the money if I choose to leave the company within a year. I have decided to leave the company for personal reasons. My question is that I was paid only $3117.50...

Sign-on bonus taxes [ 17 Answers ]

Hi, I started working in July 04 (was in college before then). I received a signon bonus from my company, before I started work. Hence, I was not taxed on it before starting. I was supposed to have been after I started working, but that never happened. So I know for this return I should be...

Another sign on bonus question [ 3 Answers ]

Hello, I have a question about a sign on bonus I just received in May. It was for 21,500 and after taxes I received approximately 12,800 dollars. I have been working for the company for a few months now, and now am moving out of the agreed area for my bonus to be effective. Is there any way...

Sign-on bonus - taxes [ 1 Answers ]

I currently live and work in nyc and am considering taking a position with a company in New Jersey. They are offering me a sign-on bonus and I was curious what percentage I would need to pay in taxes and if that would be deducted up-front. Is a sign-on bonus treated the same as a "regular" bonus...

Returning a sign-on bonus [ 5 Answers ]

Hi, I received a sign-on bonus of $15,000 in 2005 that was reported as income on my W-2. (actual amount received was $10,102.50 after taxes). I have recently left that job and need to return the sign-on bonus. My company wants me to return the $10,102.50 + $3,750 for federal taxes since my...

View more questions Search