Legal Question in Tax Law in District of Columbia
Refund of tax witholdings
I joined a company in March 2000, I was given a signing bonus of $3500 (pre-tax) which was $2088.29 after taxes. The bonus had to be refunded if I quit the job before 1 year. I quit in May 2000 and refunded $3500 to the company. Essentially I am now out $1411.71. I asked the company to reflect this in my W-2, but they would not and insisted that THEY would apply for the refund of $1411.71 and then would pass it along to me. My contention point is that instead of refunding $3500 to them, I whould have only paid $2088.29 to them, so they should return the money to me immediately. Do I have a valid case? Can I force the company to pay me immediately? I want my money now as I fear the company might be lying to me or might go out of business.
1 Answer from Attorneys
Re: Refund of tax witholdings
Your W2 should look interesting. If it is done
properly, your income tax will be overwithhedl
and you would get the difference in your
income tax refund. If your SSA tax is
overwithheld, the company has to obtain
this from the IRS and then refund to you
As a practical matter, I would never have
refunded more than the net check. A small
claims action probably will not be successful
because the time for the refund/adjustment
on the Social Security has not occurred and
the time for you to claim an overpayment of
income tax and obtain a refund has not yet
arrived
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