Bonuses being repaid

[csporluck]

When I was in the military I recieved a substantial bonus. I was given the opportunity to end my military service under a Reduction in Force program the Air Force was doing called Force Shaping.

4 months after getting out, I was given a large bill to repay some of this bonus, namely the 2004 payments. Does this have an effect on my 2004 taxable income?

Furthermore, when I got out of the military I became a Gov't Contractor and also recieved a bonus. Since I was working overseas the company didn't, or wouldn't take out Federal Taxes. SinceI had no desire to continue being attacked and whatnot, I ended up getting coming back to the states, and hid yet again with another bonus payback. Yeah, I'd have saved all this money but I had medical bills and that to pay since everythign here is out of network.

Basically, does paying back any income to an employer lower your taxable income?

[LdiJ]

Originally Posted by csporluck

When I was in the military I recieved a substantial bonus. I was given the opportunity to end my military service under a Reduction in Force program the Air Force was doing called Force Shaping.

4 months after getting out, I was given a large bill to repay some of this bonus, namely the 2004 payments. Does this have an effect on my 2004 taxable income?

Furthermore, when I got out of the military I became a Gov't Contractor and also recieved a bonus. Since I was working overseas the company didn't, or wouldn't take out Federal Taxes. SinceI had no desire to continue being attacked and whatnot, I ended up getting coming back to the states, and hid yet again with another bonus payback. Yeah, I'd have saved all this money but I had medical bills and that to pay since everythign here is out of network.

Basically, does paying back any income to an employer lower your taxable income?

Yes, and your forms W2 and/or 1099 would reflect that payback.