grichard79
Junior Member
What is the name of your state? --Mass. (but the question stems from a time when I lived in Virginia).
In 2004, I received a $2000 sign on bonus from an employer. I was to begin working for the employer in 2006 after completing another training program. The employer reported the bonus on a 1099-Misc in box 7 in 2004, meaining I paid additional self-employment tax on the amount (and, of course, it was treated as part of my taxable income). One year later, in 2005, I decided I wanted to take a different job, so I returned the $2000 to my employer.
Now that the dust has settled and I have time to think about it, I would like to recoup the taxes I paid on the money if possible. The way I figure it, I paid around $600 more in taxes in 2004 b/c of the amount.
I've thought about just filing a 1040X and explaining what happened there, but I wanted to see if anyone has any insight as to 1) should I amend 2004 for this (or should it be addressed in 2005, the year I returned it) 2) do I need to involve the company who paid the 2000 and issued the 1099-misc, or should I go it on my own).
Any advice on this thorny issue would be greatly appreciated.
In 2004, I received a $2000 sign on bonus from an employer. I was to begin working for the employer in 2006 after completing another training program. The employer reported the bonus on a 1099-Misc in box 7 in 2004, meaining I paid additional self-employment tax on the amount (and, of course, it was treated as part of my taxable income). One year later, in 2005, I decided I wanted to take a different job, so I returned the $2000 to my employer.
Now that the dust has settled and I have time to think about it, I would like to recoup the taxes I paid on the money if possible. The way I figure it, I paid around $600 more in taxes in 2004 b/c of the amount.
I've thought about just filing a 1040X and explaining what happened there, but I wanted to see if anyone has any insight as to 1) should I amend 2004 for this (or should it be addressed in 2005, the year I returned it) 2) do I need to involve the company who paid the 2000 and issued the 1099-misc, or should I go it on my own).
Any advice on this thorny issue would be greatly appreciated.