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

    Dec 27, 2005, 10:46 AM
    Relocation need to return to employer
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Dec 27, 2005, 08:19 PM
    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.
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