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Question
I received a bonus in 2021. In 2022 I left my job and was asked to repay that bonus. I received a w2c. How do I get my tax money back?
AI accountant’s answer:
Since you received a corrected W-2 (W-2C) for 2022 reflecting the repayment of the bonus, you can use that form to adjust your taxable income when filing your 2022 tax return. Make sure you use the information on the W-2C instead of the original W-2 when entering your income information. This will reduce your taxable income for 2022, potentially resulting in a refund or lower tax liability. If you repaid the bonus in the same tax year you received it (2021), you would have needed to correct your taxable income on your 2021 tax return or potentially file an amended return (Form 1040X) if you had already filed your taxes. However, since you repaid the bonus in 2022, the adjustment should be made on your 2022 tax return using the W-2C.
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