question on tax liability

Early this year, I joined a company and they gave me $10000 signing bonus. In the offer letter, it says that if I leave within one year, I will need to pay back some portion of the signing bonus based the how many months I worked there. After 12 months, I can keep all.

After 5 months, I left and they asked me to pay back $5800 (7/12 * $10000). So I paid back. When I ask them to make sure this will be reflected on the W-2 (the actual pre-tax of the bonus should be adjusted to $4200 on the W-2 form), they replied as this: If a terminating employee is required to repay a portion of a signing bonus, no payroll adjustments are made. That means the employee is liable for taxes on the entire signing bonus amount and no adjustments are made on the tax form W-2.

I totally don't understand this. Why do I have to pay tax for $10000 though I actually received $5800? Is this reasonable? what should I do? They are reluctant to answer my email now.

Any help is appreciated.

所有跟帖： 

• Look 1040 to see if you can deduct the pay back $ -jin_yin_hua- ♀ (0 bytes) () 08/30/2009 postreply 00:13:51

• thanks -blowish- ♀ (0 bytes) () 08/30/2009 postreply 12:05:30