mulekick
Level 1

Client received sign on bonus received $5000, left before the required time and has to pay back, however, it spans two years.  How does she get credit for the pay back? 

 

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sjrcpa
Level 15

Research repayment under claim of right


The more I know the more I don’t know.
Just-Lisa-Now-
Level 15
Level 15

Pub 525, Page 37  Repayments


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
TaxGuyBill
Level 15

If she hasn't paid it back yet, she should pay back the gross amount MINUS the FICA taxes.

Many employers tend to ask for the entire gross amount back, but there is no reason to give the employer the FICA taxes back because the employer will/should-be amending their 941s to get FICA back.