Was the amount your employer paid (for) you reported on your Form W-2? If the reimbursement by your employer (or payment of moving expense by them) was not reported as income, then you cannot deduct the repayment you made.
If it was reported at income, how you treat the repayment will depend on the amount you repaid.
As far as the repayment of your relocation expense goes:
The Claim of Right allows you to take a deduction (or credit) for repayment of income that was taxable in a prior year. If you don’t itemize, that won't be helpful to you!
IF you pay back less than $3000, the repayments are deductible on Schedule A (subject to the limitation of 2% of your Adjusted Gross Income.)
To report the repayment:
If you paid more than $3000 and prefer to take a deduction on your Schedule A:
To calculate and claim the credit you would need to use TurboTax CD/Download, because the amount has to be entered in Line 73, box d of your Form 1040. Per IRS instructions from the Pub 17:
"If you are claiming a credit for repayment
of amounts you included in your
income in an earlier year because it appeared
you had a right to the income, include
the credit on line 73. Check box d
and enter “I.R.C. 1341” in the space
next to that box. See Pub. 525 for details
about this credit."
Click on this link: https://www.irs.gov/pub/irs-pdf/p525.pdf
Go to page 34 and start reading at repayments. It seems that you have to recalculate what your tax would have been if the income you repaid wasn't included when you originally filed. Then take the difference between 1) the taxes you actually paid with the income included and 2) the taxes you would have paid if the income hadn't included the repayment amount.
Enter the difference as a credit on Line 73, check box d and indicate I.R.C. 1341.
@vmistico did you ever figure this out? according to this article, relo payback is not tax deductible... did you have any luck with this?
Starting in 2018, Schedule A deductions ,subject to the limitation of 2% of your Adjusted Gross Income, are no longer allowed.
IF you pay back less than $3000, the repayments are not deductible
@Hal_Al thanks for your clarification. in this case, the only option remaining is to take the credit since i am paying back more than $3000. Can you help clarify if this is still doable since it is specifically a repayment for "relocation"?
this article seems to think not: