Can I reduce witholding to claim taxes on bonus repayment?

Forum|Forum|2 years ago
January 8, 2024
1 reply
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Greetings!

I am a tax-paying resident from California. I had an event of bonus repayment of amount $75k to my ex-employer in 2024. I received this bonus originally in 2023 and 2022. Since I already paid taxes on this bonus amount, I have the right to claim back the taxes paid in financial year (f.y.) 2023 on the bonus amount. However, it seems like I can claim back this amount only when I file taxes for f.y. 2024 in 2025. Since the tax refund on bonus amount is hefty (about $30k), I am wondering if I can potentially reduce my W-4 witholding for 2024 so that I don't have to wait until 2025 to get back my bonus amount?

Any advise on this is highly appreciated.

Best answer by Critter-3

Sure ... adjusting your withholding to reflect the expected tax refund is a valid idea. Just be careful to adjust the withholding again in 2025 or you may end up short later.

Anonymous_

Employee

@Critter-3

Critter-3Answer

Sure ... adjusting your withholding to reflect the expected tax refund is a valid idea. Just be careful to adjust the withholding again in 2025 or you may end up short later.