in 2017 taxpayer received a $8,000 gross sign on bonus - net amount was $5,000. Taxpayer did not stay with the employer the full year so he had to pay the $5,000 back to the employer. The employer DID NOT correct the 2017 W-2 so the gross wages on the 2017 W-2 were not reduced by the $5,000 that was repaid. When 2017 return was prepared by big box tax store, the $5,000 repayment was ignored. I am considering filing an amended 2017 return however I'm not sure what the options are for reporting the repayment. If this repayment has to be shown on Schedule A, there is no benefit. If the employer did what they were supposed to do, the Gross Wages would have been $5,000 less so I'm thinking of showing it as a negative # on Line 21.
The difference between the 2 approaches is about $1,100 in EIC
Thoughts?
Thanks
The difference between the 2 approaches is about $1,100 in EIC
Thoughts?
Thanks