Giving back a sign-on & relocation bonus

[empatheticRN]

I just relocated to Florida. I was offered a sign-on & relocation bonus of $20,000. After tax, I got roughly $13,600. The contract locks me in for 2 years. I did not really do the math before taking the bonus. Just to clear things up, I still would have relocated even if I was not getting a bonus because my mom lives here. After doing the calculation, I am only get two dollars more per hour. Now that I am in the area , I realize that I could Have done a seasonal contract with my same place of employment and get twice the hourly rate. I called HR and they said I can switch to a seasonal contract only if I sit out for a year and then come back. Bummer. I have another contract that I kept open which begins next month. Has anyone ever taken a bonus and had to give it back because you left before the contract ended? I just picked up the first check but I doubt I can just give it back without having to fork out the difference between $20,000 & $13600.The contract clearly states I would have to give back $20,000 if I leave before it is over. How I understand this is that I will technically give back nearly $7,000 that I didn't really earn. Or is there a way that I will get this money back on my taxes? Please someone who have been in my position please explain how this works?

[That Guy, BSN, RN, EMT-B]

If the contract states you are required to pay back 20k then that is what you owe irregardless of what taxes took out. Maybe you can work out a payment plan with them. That is what I did, although mine was only to the tune of 5k.

[caliotter3]

No advice, just some sympathy for the headache you must now have. Hope it all works out with the least amount of inconvenience.

[Rose_Queen, BSN, MSN, RN]

How I understand this is that I will technically give back nearly $7,000 that I didn't really earn.

Well, by signing the contract you earned the full $20,000. Whether it went in your bank account or to taxes is irrelevant; it's still money the facility paid out to you. No different than the salary you are paid where some of it goes for taxes. Best bet to find out what happens with your taxes if you have to repay it is to speak with someone familiar with tax laws.

[llg, PhD, RN]

I suggest you talk to a tax expert. If you don't "earn" the $20K because you give it back (or don't take it. It sounds like you have not received it all yet.) ... if you don't "earn" it, you shouldn't have to pay taxes on it.

If you have already received the money and paid taxes on it, you can probably file tax forms to take care of the tax liability on the money you never really got and get the tax money back -- or at least credited to future tax years.

See a tax expert.