Return of sign-in bonus

[sami]

I have a new client who received a sign-in bonus from his new job in 2021 in the amount of $18,000 on his W2 and his employment contract stated that if he leaves before one year he will have to pay back $3600. My client left the job in 2021 and paid his employer $3600 via bank transfer as that was the only means mentioned in his contract. I understand he will not be able to get the FICA paid on it but is their a way to claim $3600 return of bonus on 1040 as the entire amount was originally reported as wages?

[New York Enrolled Agent]

I have a new client who received a sign-in bonus from his new job in 2021 in the amount of $18,000 on his W2 and his employment contract stated that if he leaves before one year he will have to pay back $3600. My client left the job in 2021 and paid his employer $3600 via bank transfer as that was the only means mentioned in his contract. I understand he will not be able to get the FICA paid on it but is their a way to claim $3600 return of bonus on 1040 as the entire amount was originally reported as wages?

There is a good content on the treatment of a repayment on page 36 of Pub 525. Two options spelled out.