I received a bonus in 2004 that stated I must stay with my employer until June 2006. I left in April 2006 and was required to repay the bonus. My W-2 from this employer shows only that I repaid the after-tax amount which does not include taxes; I think I should be able to claim the entire amount since I paid the taxes for 2004.
Since this is from a prior year it's complicated. How should I handle this? Can this be treated as a penalty? Or does it simply reduce my income for the year?
2007-02-02 03:42:40 · 3 answers · asked by Tony H 2 in Business & Finance ➔ Taxes ➔ United States
You will need to file an amendment to your taxes for 2004. H&R Block, etc., will be able to help you with it.
But surifing around at www.irs.gov can be a great way to either figure out how to handle the matter by yourself, or finally come to the realization that the government has been taken over by aliens.
2007-02-02 03:49:08 · answer #1 · answered by Glen Ulmer 1 · 0⤊ 0⤋
i would treat it as a reduction of income. i think you can deduct the gross amount because when you received the bonus in 2004 im sure the gross amount was included in your w-2 for that year and you paid tax on the entire amount. so i would deduct the gross amount from your wages.
im not sure about having to amend your return. you received the bonus in 2004 and you paid tax on it in that year. you repaid the bonus in 2006, so i think it would offset your 2006 income.
2007-02-02 03:48:25 · answer #2 · answered by tma 6 · 0⤊ 0⤋
You couldn't wait the 2 months to leave?
Did you get the new job to cover it?
Did you pay the full amount or just the amount you received?
2007-02-02 03:55:13 · answer #3 · answered by idtshadow 6 · 0⤊ 0⤋