Signon bonus repayment taxes witheld

Forum|Forum|4 years ago
April 8, 2022
1 reply
0 views

Hi Community,

I received a signon bonus from a company I joined in 2021 but I left the company this year and had to pay back a portion of the signon bonus pro-rated. The company issued me an updated W2-C for the difference in the amount I returned back reflected in the wages box (1). However, the W2-C also shows updated taxes withheld which is lower than than the amount that were actually withheld in 2021. I checked with the company and they say that the difference in taxes withheld is correct as that amount is claimed by the company as I never received the full amount (because I returned back a portion of the signon bonus). This part is confusing to me, as I feel that the taxes on the original amount were already paid and since I returned a portion of the signon bonus, I should be able to get the difference in taxes withheld as return.

Can someone shed light on how to handle this situation? If I enter the updated W2-C values, I don't see a difference in the return amount in Turbotax.

LeonardS

When you receive a corrected W-2 you need to delete the original W-2 and then enter the corrected W-2. You do not report both W-2s on your tax return.

To remove the original W-2 follow these steps:

Open or continue your return
Search for W-2 using the search in the upper right corner and then click the Jump to link in the search results
This brings you to the Here's your W-2 info screen. Click the trash can icon next to the unwanted W-2 and then answer Yes on the following screen

This TurboTax link https://How do I delete a W-2? has information you may find useful.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"