Legal Question in Tax Law in Massachusetts

Re: repaying sign-on bonus

Ask your accountant -- have you already filed your 2008 return? If so, file an amended return. You never had unfettered right to the money, but the exact answer depends upon the language of the contract.

Best wishes,

LDWG

Re: repaying sign-on bonus

You need to review the terms of your contract specifically. If you never had an unfettered right to the Bonus, you may be able to deduct it from your 2008 income if you have not already filed your 2008 you may be able to deduct the bonus from your income. If you do have to pay tax on the bonus in 2008, then you would deduct the re-payment from your 2009 taxes.

Good Luck.

Re: repaying sign-on bonus

The first issue is whether the original payment was considered gross income pursuant to IRC Sec. 61 and not subject to any exclusion. The second issue involves whether the original recipient of the monies was treated as an employee by the original payor. The tax ramifications vary depnding upon the specific facts;))))