Greetings: I received a sign on bonus from an employer in 2008. The bonus was paid through payroll in 2008. I them decided to switch jobs, consequentially, I owed the sign on bonus back since I did not fulfill the two year requirement per agreement. The bonus was paid back to the employer in full. My question: How can I get credit for the sing-on with the IRS since the sign-on was paid back? I really never earned the money and it was paid back, but the amount still showed up in the W-2 for 2008. Thanks.

You received sign on bonus in 2008. When did you return it? If it was returned in 2009, then you will report it on 2009 tax return.