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Level 5
March 25, 2021
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Is repayment of prior year's wage subject to 2% misc deduction limit?

  • March 25, 2021
  • 1 reply
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client returned $14,000 sign-in bonus that was included in 2019 W-2 to employer in 2020 when he left the company.  

they want to claim this repayment in 2020 itemized deduction.  Is this deduction subject to 2% limit?  Or, it is under "other deduction"?

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Best answer by abctax55

Research 'claim of right'.

1 reply

abctax55
abctax55Answer
Level 15
March 25, 2021

Research 'claim of right'.

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