Repaying Bonus - Taxes
 

I am leaving a regional before the commitment period is up. I got a $5000 bonus which turned into $3200 after taxes. When I go to repay the bonus, do I have to pay $5000 or $3200?

Tax Implications
 

You will have to repay the $5,000 as that is what the airline is out. However you will be able to deduct $5,000 from your earnings which will reduce your tax liability and probably come out about even, all things being equal.

You could also then reduce your withholding for the rest of the year, since you will have over-withheld from the bonus.

Is the bonus pro-rated?

At Expressjet you pay back what you were paid after taxes. The employer can do the math and recoup the difference.

Any airline that makes you pay back the full amount and go to the IRS for the difference is making it difficult on purpose.

Two things I never take advice from pilots on- Taxes and relationships. Talk to an accountant/tax attorney.

Will you be paying it back the same year that you got it?