I received $10000 taxable amount from my employer as lump sum relocation bonus in Nov'2005. I signed up a letter with the employer that I need to stay with the company at least for a year.
Now I will be changing my job in Feb because of some issues, my employer has deducted tax at 40% rate from $10,000( I received about $6000 in habd).
Now if I need to return the whole money back in Feb' 2006, how I can claim my tax return. Can employer do something.
Do I need to retrun only $6,000 to employer or all $10,000.
These are two different financial years as far as tax retrun is concerned.
Please reply

Dngoyal:

You need to negotiate with your employer as to how much of the relocaion bonus need to be returned. Since I am not a lawyer, I cannot advise you on that issue.

Tax-wise, whatever is returned should be debited from your 2005 income. Since the quarterly return by the employer is not due until 15 January 2006, this should not be a problem if you can resolve this issue prior to that date.