if you have to pay back retention bonus, do you pay back the gross amount, rather than the post tax amount that you received aka losing money?

like
Posting as :
works at
You are currently posting as works at

You pay back gross
But you can deduct it from your income
Ie if you got a 5k sign on, got 3500
But you left, and paid back the 5k, you can deduct 5k from your income

This is how my accountant explained it to me, but let me know if I butchured it

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Taxation is theft. Will just leave this here haha

helpful

Yup. But you eventually get everything back when you file taxes.

You get to write the bonus off as wages returned to your employer. It’ll result in a pretty large return.

OP, if you have to pay back the bonus, then don’t file it as income when you do your taxes.

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