Question

How do I document a moving bonus that I had to repay an ex-employer?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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In 2015, I was paid a moving/hiring bonus when I started a new job. However, I left the job in 2016 and had to repay half of that. How do I put that amount in my taxes as that was sent in a check directly to my ex-employer? (My ex-employer told me I don't have to file an amended return for 2015 but I can't find the letter they sent me.)

TurboTax Deluxe Online

D

DavidD66

If your repayment was more than $3,000, there are two possible ways of doing the calculation.

Method 1 is to take a deduction, which is the simplest method but may not get you the full benefit.

To calculate the repayment as a deduction, (Method 1):

Federal taxes - Deductions & Credits - Check for More Tax Breaks - Other Deductions & Credits - Show more - Other Deductible Expenses
When you get to the screen that shows Less Common Expenses, click No
The next screen will have Any Other Deductions? at the top. Please answer YES to "Did you have any other deductions that are not subject to the 2% limitation?"
Please enter the amount you repaid under, "Claim of Right Repayment (Only if over $3,000).

To explore the more complex route of calculating the credit, please refer to IRS Publication 525 (https://www.irs.gov/pub/irs-pdf/p525.pdf)

NOTE: If you choose to follow the more complex route and use the credit:

You will need to use the Desktop version of TurboTax (available here: https://turbotax.intuit.com/personal-taxes/cd-download/)
The amount of the credit can only be entered in the Forms mode
Any entries made directly into forms will waive the Accuracy Calculations Guarantee (https://turbotax.intuit.com/corp/guarantees.jsp).

For repayments of less than $3,000:

Federal taxes - Deductions & Credits - Check for More Tax Breaks - Other Deductions & Credits - Show more - Other Deductible Expenses
When you get to the screen that shows Less Common Expenses, click Yes
Enter a description and amount that you repaid; click Continue

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