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

    Sep 5, 2007, 02:37 PM
    Sign on Bonus Taxrepay & deducting yearly bonus from my sign on
    I got a $5,000 sign on bonus & left the company under 1 year.

    They held back my $3,033 yearly bonus to deduct it from what I owed them in sign on.

    BUT they took taxes out of the $3033 bonus before deducting it from what I need to pay back. So they are subtracting $1817 from $5,000, saying I owe them $3,383.


    Should they be subtracting the Net Bonus, if I'm not actually getting paid that amount? I don't understand why I'm being taxed on money I'm not paid?

    What should I do? It seems like it would be better if I kept these transaction completekly separate.
    Can I have them capture the -$5,000 in my W2s? If not, what documentation do I need at tax time to get this captured.

    Thanks in advance!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 5, 2007, 07:12 PM
    The bonus payback should be reflected on your end-of-year W-2.

    It should also be reflected on your final check stub.
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