they will ask that you pay it back upon termination while filling out all the termination paperwork, probably in a written letter. Generally, Taxes are withheld when the bonus is paid out and you need to repay the pretax amount to your current employer. If less than $3k, it is a miscellaneous deduction subject to 2% of agi limitationsl; if over $3k, then,you can take the repayment off on sch A line 28 ,no reduction of 2% of agi. Or, you can recalculate the year's return where you reported the income without the payment. |