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Repayment of sign on bonus reported on W2

Forum|Forum|6 years ago
April 14, 2020
6 replies
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I have a physician client who received a sign on bonus in 2019 of $56000 that was reported on a W2. He received a better offer from another physician's group and never joined this group. They had him pay back $58000 with his personal check in March, 2020. I am not sure that I can deduct this. The group will not reissue the W2 showing no income. Any suggestions.

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Best answer by abctax55

Research 'claim of right'.

Level 13

He'll pay the tax on the 2019 return. That gives you time to research "claim of right" for the 2020 return.

Level 15

@rbynaker ... jinx 😂

HumanKind... Be Both

Level 13

Remember the good ol' days when the forum software would tell you that someone else was replying at the same time? What a fantastic upgrade this was!

Level 15

Research 'claim of right'.

HumanKind... Be Both

saboyercpaAuthor

Level 3

Thanks everyone. I see how to do it now. It will have to wait until 2020 since that is when it was repaid.