[Shan27]

In 2008, my husband received a $7,000 bonus which we paid taxes on. In 2009, he left the job before the contract period and was asked to repay the $7,000. The employer gave us a letter stating the $7K was paid but there is no info in his w-2 showing the repayment to them or adjustment to salary based on repayment.

How do we account for this in our taxes without it document in his w-2? We have the letter plus the copy of the cashed check.

[AtlantaTaxExpert]

You need to examine his pay stubs to see if an adjustment to his pay to compensate for the returned $7,000.

If not, then you need to amend the 2008 return to show the $7,000 debit on his income, plus file Form 843 and 8316 to claim a refund of the FICA (Social Security and Medicare) taxes paid on that $7,000.