I recently quit a job where I was forced to pay back a portion of relocation expenses the company gave. This money was taxed as income. What will I have to do to reclaim the taxes I paid on that money? The company made me reimburse them for the full amount, before taxes.


1 Answer 1


If you return the money in the same tax year - it will not appear on your W2 and you will not be taxed on it. Whatever was withheld - you'll get it refunded when you file your annual tax return.

If you return it in a different tax year - it becomes a miscellaneous deduction reported on your Schedule A. If the amount is less than $3000 - then this deduction is subject to the 2% AGI threshold, if the amount is more than that - it is not subject to threshold.

Bottom line, you're probably going to lose money, unless you're already itemizing and the amount is above $3K.

There's also a credit that you can take instead of deduction. See publication 525 for details.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .