Tuition assistance bonus

[slanzino]

I received tuition assistance from my former company of $12,997.80 in 2015 that was tax exempt. I left the company as of 12/31/2015. I received a bonus from my new employer of 12,000, that was taxed, to pay back the former employer on 1/5/2017. I paid the tuition assistance in full. Can I claim a deduction for what I paid back?

[Howard1948 · Accepted solution]

While I'll first admit that I can't think of a reason why the $12,997.80 would in total be tax exempt, I'll take your word for it.  That being the case, the repayment to the employer would not be tax deductible.

[slanzino]

It was over 3 payments. It did not hit my w2 from the 2015. I had a contract stating that I had to pay the amount if I breached the contract which i did. Would this qualify for
"Damages paid to a former employer for breach of an employment contract" under misc deductions?

[Howard1948]

No, because, as you state, it was not taxable income in the first place.