Here is update.
I followed this successfully . The TBTax software figured out reduction automatically. I mailed both FED and STATE 5/26. Received State refund already given the state has budget surplus. And FED is still waiting given it has deficit. But it is only half a month.
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what you should have done first for your 2020 return and not as an amendment but simply an adjustment to box 1 of your w-2 is to reduce it by the relocation gross compensation you paid back in 2021. this reduces your 2020 income taxes."
One thing noteworthy was when the company withheld the tax it took the total of FED and STATE taxes. If you think that withhold is just fed, you may have gap in your expectation.
