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    mv100's Avatar
    mv100 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 7, 2008, 06:27 AM
    Sign on bonus repayment
    I received a sign-on bonus when I joined a Company with the stipulation that if I left before 1 year I was under obligation to repay the sign on bonus
    The amount was 40,000 but after taxes I only received around 23000.
    I have decided to leave the company after 4 months. This will still be within the same tax year.
    My question is: Am I obligated to write a check for the complete 40000 (and how would I recuperate the taxes that were withheld?) or for the 23000 I actually received?
    Thanks
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
    		  
    #2

    Aug 7, 2008, 06:48 AM
    Hello mv:

    You received the benefit of the entire $40k, therefore you'll need to pay the entire $40k back. If this results in an overpayment of your federal income tax, then you'll be able to get that back. Same thing with the state. I don't know about SS and FICA.

    But, the payments to SS and FICA benefit YOU too, even if you can't get back the immediate payment.

    excon
    rockinmommy's Avatar
    rockinmommy Posts: 1,123, Reputation: 82
    Ultra Member
    		  
    #3

    Aug 7, 2008, 07:22 PM
    I agree with excon - you repay the entire $40K. It should then show up on your tax return as some sort of loss. Make sure your accountant knows about it.
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