Paid back wages to employer.

[barbgriz2]

I paid back a signing bonus (that was reported income on our 2017 return) in 2018 due to a contractual obligation not met.  How do I enter this income adjustment on my 2018 tax return?

[DanielV01]

It depends.  How much was the payback?  Was it over $3000?

[barbgriz2]

yes

[DanielV01 · Accepted solution]

There are two options: deduct the repayment (subject to itemized deductions, however), or claiming a credit.  I recommend the "credit" option unless you are already itemizing deductions and your income this year is higher than last year.  The credit method determines how much less tax you would have in 2017 because of this income you have had to repay.  

Critter #2 gives excellent instructions on how either method may be entered into TurboTax in the following link (the Pub referenced is from 2014, but the pub for this year has the same provisions):  https://ttlc.intuit.com/replies/7016599

[barbgriz2]

Very helpful.  Thank you!

[DanielV01]

You are welcome.  It can take a bit of work to claim the credit, but is worth it.