Will make a complex situation really brief.
What is tax treatment (Fed and State) when an employee refunds compensation ("clawback")?
This is the result of repaying "recoverable" compensation. Long story, but received a relocation payment that was recoverable if I left within 2 years...which I did. That payment was taxed/treated exactly the same as normal income. Note: in this case, only the "net" amount was recoverable. Wrote that check back in the spring.
And...may possibly be doing the same thing again. New employer provided a signing bonus that is fully recoverable (gross amount) if I leave within 1 year. Job is a horror story, so may be doing so. Hence my inquiry.
Any thoughts? Will obviously talk with our tax guy but interested in comments from the brain-trust...which is probably sharper than my tax guy!
