Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-01-2015, 05:56 PM
Junior Member
 
Join Date: Apr 2015
Posts: 1
Employer provided Incentive with Clawback clause

Hi,
I work for an employer who has decided to give me an incentive of $ to stay with my company with the clause in it that if I leave anytime in 2 years I owe all the money back. My employer will take out taxes now when they give me the money and record the total income addition on this years W2. They likewise insist if I leave, I owe them a check for the entire amount.

My question is what happens if I decide to leave my employer under 2 years to my stated income and can I go back and restate my 2015 income to a lower number and thus recoup the taxes paid as well?

Any insight, I just don't know if I can make my income go down, and refile my taxes from a prior year or what.

Thanks .... Chris



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 04-01-2015, 11:36 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
they will ask that you pay it back upon termination while filling out all the termination paperwork, probably in a written letter. Generally, Taxes are withheld when the bonus is paid out and you need to repay the pretax amount to your current employer. If less than $3k, it is a miscellaneous deduction subject to 2% of agi limitationsl; if over $3k, then,you can take the repayment off on sch A line 28 ,no reduction of 2% of agi. Or, you can recalculate the year's return where you reported the income without the payment.



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
SEP-IRA if covered by employer? jennem IRA/Sep 0 01-16-2014 08:40 PM
1099 Misc for Short sale incentive AngieZ Income 1 02-25-2012 10:21 AM
Is there a way to deduct money that was provided as a loan to open business bentoit S-Corporation 1 04-18-2011 08:58 AM
Employer taking Employer Tax from my pay check. Why? stevechava Miscellaneous 0 04-19-2010 05:31 PM
I didn't get my W-2 from employer david Income 2 01-25-2007 09:30 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