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Understanding this isn’t what you were asking, how close to the year mark are you? What’s the difference in the reason for leaving that’s so appealing you’d consider paying back the bonus?
5 months away. Higher paycheck. I could use the new sign in bonus to pay half of old one and would need only the equivalent of 3 months of the additional income to payoff the rest. So worth making the move without waiting.
Lol following!
Isn't it f*ed that they don't pro-rate it anymore? Feels like modern indentured servitude
People accepted indentured servitude too.
I looked into this myself as I was contemplating a move before my mandatory 2 year period was up. Based on what I found, think you are totally screwed. Your bonus is taxable comp in year received, and in following year, as an individual, you have no basis for a deduction for year 2 payback.
Thanks!
It was my understanding that if it’s paid back in the same calendar year, only the net amount needs to be paid and the company needs to amend their 941. If it’s paid in a subsequent year, full amount is paid and deducted from wages
If it is in the same year, then it is easy it just doesn’t count as income and your taxes at the end of the year will be fine. Witholdings will come back as an over payment.
If you received it in one tax year and return in another that is tricky - get tax help.
Also - move out of NYC, not worth the taxes to live there.
Why have you tagged all companies?
You’ve effectively prepaid some taxes but in your 2021 return it should get straightened out
Ultimately for your tax return you pay income tax over what you earned. What you paid back should come out of it. You have to ask it to be reflected in your W2
Don’t take PTO, use your PTO money to pay it back