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Matt...I have a similar issue as on this thread. I took

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Matt...I have a similar...

Matt...I have a similar issue as on this thread. I took employment with a company last year. They paid $51K ($41K relocation $10K in tax plus up) in relocation expenses. I have been with the company less than a year, and am responsible for paying back the relocation costs. The $51K was reported on my 2015 W2. I am having to pay back the $51K in 2016. Can I claim any of the repayment on my 2015 taxes or do I have to wait for 2016?

Accountant's Assistant: Thanks. Can you give me any more details about your issue?

Lev, please see above

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Submitted: 2 years ago.Category: Tax
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1/20/2016
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
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When payment is included into taxable income - then when later you PAY that amount back - that classified as REPAYMENT.
If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it. Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it.
Repayment is reported on the tax return for the year when it is repaid - thus if repayment is made in 2016 - it is reported on your 2016 tax return.

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Tax Professional: Lev, Tax Advisor replied 2 years ago

You will find information about HOW to claim a deduction or a credit for the repayment in IRS publication 525 -

www.irs.gov/pub/irs-pdf/p525.pdf
see page 34 for details and examples.

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