Repaying Retention bonus

Forum|Forum|2 years ago
December 14, 2023
1 reply
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I received a retention bonus for $14K but $6K taxes were taken out when it was paid to me, so I only received around $8K. Now, I'm paying back the $14K total in the same year. How can I recoup the $6K in taxes? What documents should I fill out or get from my ex-employer? I know very little about different tax situations and documents so would love help on it. Thanks!

Not A Product Question

Best answer by Critter-3

If you got the bonus and repaid it in the same tax year then this should be captured on the W-2 issued in January and the excess fed/state withholding will be recouped on the tax return.

Critter-3Answer

If you got the bonus and repaid it in the same tax year then this should be captured on the W-2 issued in January and the excess fed/state withholding will be recouped on the tax return.

Hal_Al

Employee

As @Critter-3 said, it should all be handled by a correct issuance of your 2023 W-2, in January 2024. Wait for the W-2.

If your employer does not handle the W-2 correctly, reply back for specific instructions for your circumstances. You may have to use a work around, in TurboTax.

questionsabouttaxesAuthor

I was notified that Paychex flex doesn't give out W-2s for employees who didn't officially work at the company but received the post tax sign-on bonus and returned the pre-tax amount. I have no other documents from my employers other than the paystubs showing post-tax bonuses and my wire transfer confirmation of pretax amounts. What should I do? Thanks!