Receiving and Returning a Bonus the Same Year

[buckeyedoc]

Wondering if the experts here can point me in a general direction for all the sign-on Bonus issues.

I started working for a company in June who gave me a 15K sign on Bonus. Of course in pocket was about 10k odd. The stipulation was to work for them till June 2015.

Well, I have found position that I cannot give up on. A 20% increase in pay, a much better location, and a better yearly bonus. Added on, they are willing to give me 15K sign on bonus also with NO stipulations, except submitting a project which will take 6 months (so I guess I have to stay 6 months).

That said, I assume the expectation from the current company is that I will return the full 15K. Understandable. Is there some tax rule/law that can be applied since the Bonus paid to me, and me returning it back to them is both in the same year?

Comments Welcome!!!

 

[ColinCPA]

If you are an employee, your employer needs to adjust for this on your W-2. If they do not, you need to get a corrected W-2 for the year.

If you are a contractor, the employer should adjust the 1099 to the correct amount. If it is not correct, just put the 15K returned bonus as an expense on Schedule C.