Relocation expenses payback & taxes

[stinahohman]

Hello, 

I received $5,000 in relocation expenses from my company in Nov 2022. I left the company recently and now they are stating i owe them around $4300. This included $3000 in taxes in addition to the $5000 and some other fees. I live in NJ so not sure where the $3000 came from if I included this on my tax return in 2022. Should I explain this when I file my taxes for 2024? 

[Mike9241]

in 2024, you can take as a deduction for the repayment on schedule A line 16 denote as IRC 1341 repayment OR
recompute the taxes in the year you received the payment (2022) by excluding the payment.
the decrease in taxes is taken as a credit on schedule 3 line 13b

the amount to use is the relocation allowance included in box 1 of your 2022 W-2.

$3000 seems high for taxes but perhaps the moving expenses were a lot more. the company might have paid part of them directly and gave you $5K for what you paid. this is a guess. if you need details of the amounts the only place to get them is from the company