Originally Posted by CrowneVic

They will want the full amount back. BUT, what they are SUPPOSED to do is issue you an adjusted W-2 reducing your income for the affected tax year by your bonus amount.

You would then file that adjusted W-2 the next time you do taxes if in a different tax year, and get a refund of the taxes paid. If you haven't filed taxes yet for the year of the bonus, then it doesn't matter because you will just file the adjusted W-2.

When they come knocking for their money, you should negotiate repayment only on the condition of issuing you an adjusted W-2 immediately. If you need to set up a payment plan, then that's a little harder.