Bonus payback and tax return issues
 

Did any of you all that left piendmont and had to pay back the bonus have to file a form 843 "tax abatement form" with the irs to get you tax libility reduced in the amount of the bonus you repayed. Piedmont only reimbursed social security and medicare and said its on use to figure out the rest per the contract we signed for the bonus. I recieved a bonus and repaid the bonus in 2023, but they would not just make the box 1 on the w2 reflect the bonus repayment. I don't have a cpa to ask these questions to so I'm hoping someone here has been through this.

Did you pay the whole thing back including the taxes or did you give them the amount you actually received and are waiting for the IRS to reimburse you before giving the rest?

I have 150k bonus that i may have to pay back for health reasons and I am wondering the same.

I paid back the whole amount. There is no other option.

Piedmont will only give you back the social security and medicade once you pay the money back, but they will not update your federal or state taxes. They cut you a w2 as if you recieved the money. So I think what needs to be done is sending an IRS form 843 to the IRS seperate of your return to ask for a tax forgivness of the difference you actually made. I was told that the bonus we sign says were responsible for recovings owed taxes so they are washing their hands of cutting a w2c.

Im just wondering if they work with you on paying back the tax. Its 60k which I dont have lying around. I would have to recover the tax before I could pay it back to them. Not sure how that works. My accountant is not that sure as well.

You said you have health issues. I thought in the contracts there is a paragraph about if you lose your medical then the debt is forgiven.? IIRC. Its been a while since I have read one and I'm not sure if they all say the same thing. There may be a way to work out a payment plan but I havent heard of this. If anything you pay what you can and unfortenutly the rest will be sent to debt collections and interest will be charged.

Sorry to hear about you situation.

I just sent the IRS a 843 asking for the tax abatment and it says normal processing time is six months. So I guess ill know if that was the correct form in six months.

I received the bonus in 2032 and repaid it in 2023. I used a Claim of Right to account for the repayment on my 2023 taxes. Not sure if that helps your situation or not.

Can you please elaborate a bit on that? How does that work?
Thanks