I am paying back $24,500 in tuition assistance that I received in 2017.
The first $5xxx-something was untaxed but the remainder showed up on my 2017 W2 as income. Now that I'm repaying it, I'm expecting to file an amended 2017 return once I make my final repayment in June.
Is this the correct action to take? I don't understand if that 2017 income actually goes away or if my 2018 income is somehow modified, or something else entirely.
I also tried putting my reduced salary in turbotax and it indicated that I would have significant overwithholding in taxes that I'd need to reclaim from my former employer or via form 843.
If it matters, my former employer paid me directly as a normal paycheck, so my 1098-T indicates that I paid the full tuition amount myself.