An educational estimate — not advice.
Cost Of Quitting.com helps you understand what a clawed-back signing or retention bonus costs you after taxes. It's a starting point for your own research and a conversation with a professional — not a substitute for one, and not a determination of what you owe.
Not tax or legal advice
The information and estimates on this site are provided for general educational purposes only. They are not tax, legal, financial, or accounting advice, are not a substitute for advice from a qualified professional, and don't create any advisory relationship. Repaying a bonus is a real money-and-legal decision, often made under stress — before you act, confirm your situation with a CPA or an employment attorney.
What is estimated vs. exact
The calculator produces an estimate built from the figures you enter, not an exact determination. In particular:
- Proration is contractual or statutory, not automatic. The tool prorates only if you tell it to, using the vesting period and months served you enter. Whether you actually owe a prorated amount — or the full bonus — is whatever your agreement or controlling state law says, not something this tool can decide for you.
- The gross/net timing branch describes the general mechanic. The same-year (repay net) vs. cross-year (repay gross, then recover) rule reflects the general shape of the law; your employer's actual payroll treatment and W-2 handling can differ. Confirm it with payroll.
- The IRC §1341 recovery is your marginal rate applied to general mechanics. The over-$3,000 threshold, the deduction-vs-credit two-method election, and any AMT or itemized-deduction interactions depend on your full return. The tool uses the single marginal rate you enter, so a wrong rate skews the recovery, and the credit isn't a refund the IRS sends — it's a line you or your preparer elect.
Time-sensitive and subject to change
Tax rules, dollar thresholds, and state clawback statutes change. This tool describes the general shape of the federal law for educational purposes; it is not warranted to reflect the current-year figures for your situation. Verify current federal rules against primary sources such as 26 U.S.C. §1341 and IRS Publication 525 before relying on any figure.
State clawback law is not modeled
This tool computes the tax cost of a repayment; it does not model whether a clawback is enforceable in your state, and it quotes no state-specific figures. Some states restrict or cap employment-contract clawbacks. If enforceability is your question, check your state's current law or talk to an employment attorney — don't rely on this site for it.
Verify before you rely on it
We do our best to describe the mechanics accurately and to cite primary sources, but we make no warranty of accuracy or completeness and accept no liability for decisions made based on this site. Confirm the numbers and how they apply to you with a qualified professional. See our terms of use.
No affiliation
Cost Of Quitting.com is an independent tool operated by Red Goggles LLC. It is not affiliated with, endorsed by, or connected to the IRS, any employer, any payroll provider, or any financial institution.
Last updated: June 8, 2026