Welcome Guest. Register Now!  


For 2013 Tax Tips For Year 2013.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-06-2014, 04:13 PM
Junior Member
 
Join Date: Apr 2014
Posts: 1
Question Repay bonus from 2012

My wife received a signing bonus in 2011 when she took a new job. Since she ended up leaving that job in 2013 before the 2 year term of her agreement was complete, we had to pay that money back to the company. I'm not sure how to handle that on our 2013 return. Since we recorded it as income back in 2011, do we need to amend that return, or do we need to fill out some specific form for 2013?

Any help would be appreciated. Thanks!

Edit: Realized I put 2012 in the subject, but it should be 2011


Last edited by ADent : 04-06-2014 at 04:16 PM. Reason: correction


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-06-2014, 05:50 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
Quote:
Originally Posted by ADent View Post
My wife received a signing bonus in 2011 when she took a new job. Since she ended up leaving that job in 2013 before the 2 year term of her agreement was complete, we had to pay that money back to the company. I'm not sure how to handle that on our 2013 return. Since we recorded it as income back in 2011, do we need to amend that return, or do we need to fill out some specific form for 2013?

Any help would be appreciated. Thanks!

Edit: Realized I put 2012 in the subject, but it should be 2011
In general, the bonus needs to be reported on her W2 as an EE, NOT on 1099. (This is not your case I guessHowever, IF she gets a 1099 in 2011 for that bonus and reports it on her 2011 tax return, paying income tax and self-employment tax on Sch SE.). You are considered as having received that money. You will not be able to get back the SS or medicare, unless your total salary for the year exceeds the $106,800 for 2011 maximum.If you have that documentation, you will report the fed tax withheld from the bonus as withholding on your 2011 return.
If you pay back the money in 2013, you'll claim the credit or deduction for the payback on your 2013 return. You didn't really pay back the taxes in 2013. What you paid back was the tax allowance the company gave you. You can't get that back from the IRS or SSA.
so, if you repaid amounts reported as income in 2011,if the amount is $3k or less, it is a miscellaneous itemized deduction subject to the 2% limitation on Sch A. if the amount is more than $K, it is a miscellaneous itemized deduction which is not subject to the 2% limitation.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
First Time Home Buyer Tax Credit repay? chugsmcgee Homeowner Tax 1 04-26-2011 12:35 PM
When are Taxpayers required to repay the First Time Homebuyer Tax Credit? TaxGuru Homeowner Tax 0 01-29-2011 01:40 PM
Relocation Bonus xestanz Income 0 05-01-2009 04:15 PM
Tax on Performance Bonus DFWDesi76 Income 0 03-11-2009 10:39 AM
Underpayment Penalty - $1025 REPAY jagkab Estimated Taxes 1 03-08-2009 01:45 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning