Amy,
This post was super helpful for me. I believe my situation is the same as the original poster but would like to confirm.
I had relocation expenses and a bonus provided by an employer and everything was grossed up to cover the tax liability for tax year 2020, I did not have to cover the taxes myself. I left that employer before my contract was fulfilled so I had to repay $18,567 to the employer in 2021. I am now filling my 2022 taxes and if I read this post correctly, I can deduct the $18,567 from my taxable income on my 2020 taxes to recalculate my tax liability in 2020. The difference between that newly calculated tax liability and the tax liability that was on my summited 2020 taxes is now my credit.
My question is:
1) Do I amend my 2020 taxes or do I just claim the credit on my 2021 taxes?
2) Is everything I stated above correct?
3) All I have for a paper trail is a signed settlement letter from my previous employer noting I owe them $18,567 and a cleared check. Is that enough should i be audited?
Thank you so much!
Jordan
Jordan
