It's not uncommon for sign on bonuses to have a provision wherein if you leave the company before a certain period of time (let's say 2 years) that you have to pay back the sign on bonus in full.

My question is... what happens if you leave on a different year than you were hired but still before the 2 year period?

In that scenario you would have already paid taxes on the sign on bonus. I don't imagine deducting the sign on bonus from your end of year income is going to really be an option.

The problem is... if the year you're leaving is not the same year you were hired then have you basically just paid taxes on money that

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