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    pootpoot's Avatar
    pootpoot Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Feb 24, 2007, 08:05 PM
    Sign on bonus repayments
    Can somebody help me please? I already asked my accountant but it seems like he doesn't know what to tell me. Here is my situation:

    I got a 10,000 sign on bonus net is only 5700 with a 24 month contract
    I got the Part A of bonus in 2005 Part B in 2006
    I left Jan 2007 ( only completed 18 months out of 24) so I was asked to repay the net of the bonus 5,700. I repaid the bonus Feb 2007
    I ask the company to redo my W2. Do they need to redo both 2005 and 2006? The 2005 was alreay filed?
    Will I get refunded for the taxes I paid for this when I file my tax for 2006?
    My company said something like it is a lot of work to redo my W2 but I told that they have to since I return that back this month.

    Thanks,

    pootpoot
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 25, 2007, 01:05 AM
    Assuming you did not get paid enough in 2007 to completely offset the payback amount, then re-issuing the 2006 W-2 is the only way to handle this problem In my opinion.
    pootpoot's Avatar
    pootpoot Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Feb 25, 2007, 03:30 PM
    Quote Originally Posted by pootpoot
    Can somebody help me please? I already asked my accountant but it seems like he doesn't know what to tell me. Here is my situation:

    I got a 10,000 sign on bonus net is only 5700 with a 24 month contract
    I got the Part A of bonus in 2005 Part B in 2006
    I left Jan 2007 ( only completed 18 months out of 24) so I was asked to repay the net of the bonus 5,700. I repaid the bonus Feb 2007
    I ask the company to redo my W2. Do they need to redo both 2005 and 2006? The 2005 was alreay filed?
    Will I get refunded for the taxes I paid for this when I file my tax for 2006?
    My company said something like it is a lot of work to redo my W2 but i told that they have to since I return that back this month.

    Thanks,

    pootpoot
    Thank you for the information. Since I already filed my taxes for 2005 so I need to file an amended one for that then. So my employer should redo not just my 2006 W2 but also my 2005 W2, right? Or they can just redo my 2006 W2 reflecting the amount I paid back to them thus lowring my 2006 earnings.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Feb 26, 2007, 10:55 AM
    I would have them adjust ONLY the 2006 W-2.

    Why make it more complicated than it already is?
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