Accounting, Payroll & Pension Issues/repayment of retention bonus

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Expert: - 3/18/2011


Question
I received a retention bonus in 2010. I am leaving my job and so have to repay the gross amount in 2011. When I file my taxes for 2011, do I get to deduct that amount that I repayed from my income taxes?

Answer
You will get a revised W-2 for 2010 or it will be taken off your 2011 W-2. You will need to contact the company about how they are handling the repayment.

If you are getting a revised W-2 for 2010 you will have to file a revised income tax form for 2010.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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