Taxable Relocation Repayment

Hi,

In 2022 I received taxable relocation assistance of $38k, with a 2-year retention clause. I am taking a new position and will have to repay $10k in 2023. How should I treat this on my taxes? Do I file an amended tax return for 2022, and request an amended W2? Is there a mechanism for reducing my taxable income in the current year for the same amount?

Thanks!

502

Expert Alumni

Feb 26, 2024 1:15:38 PM

You don't need to amend your 2022 tax return or request a corrected W-2.

This is a claim of right repayment. You can only report it in the year you actually repaid the claim (on your 2023 tax return).

If your repayment is less than $3,000, you'll claim it as a Miscellaneous itemized deduction in Schedule A.

If the repayment is more than $3,000, please read this TurboTax Help topic on how to make the claim.

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Taxable Relocation Repayment