[paandaa]

Hi,

My bonus was 5k with net pay of $2872.50, paid in 2007. I have to return $5k back to the company now since I am leaving before completing 1 year.

I do understand that federal tax can be refunded by following the steps listed in Publication 525. Is there a way to also reclaim the social security and medicare tax that was withheld?

Thanks!

[AtlantaTaxExpert]

Your employer has to amend their Form 941 to claim a refund on the taxes THEY paid. Once they get the refund, they should then refund your share of the Social Security and Medicare taxes.

[paandaa]

Thanks Atlanta Tax Expert! I appreciate it.

[MukatA]

Yes, the best option is that the employer adjusts your FICA taxes. If this is not done, then you will need to file Form 843, which is filed separately.