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

    May 3, 2008, 05:42 PM
    Sign-on bonus repayment
    I received $11,500 in sign-on bonuses with a company in 2006. Now in 2008 I have to pay that back plus 8% interest per year. I am wondering how I can recoup the money I paid in taxes on the bonuses. Please also note that in 2005 my husband and my income was around $73,000. In 2008 I believe it will be around $170,000. Would it be better to amend the 2005 taxes or claim it in 2008? Or do I even have a choice? Thank you in advance to whomever responds.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    May 3, 2008, 06:05 PM
    You received sign-on bonus in 2006, so it is income in 2006. You are returning sign-on bonus in 2008, so it is negative income in 2008, so must be on your 2008 tax return.
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