Repayment of sign on bonus reported on W2

[saboyercpa]

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.

[rbynaker]

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

[abctax55 · Accepted solution]

Research 'claim of right'.

[abctax55]

@rbynaker ...  jinx 😂

[rbynaker]

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!

[saboyercpa]

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

[itonewbie]

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@rbynaker wrote:

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!

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Maybe that's still available if we're willing to sign our lives away. 😀