Relocation Repayment

[MusicalSunrise]

State of Colorado

I have a two year relocation agreement and recently quit at about 15 months. My repayment is pretty large (think xx,xxx). I have figured out I can claim what was in my W-2 as a deduction but what I am wondering is can I record the repayment as a loss? I also trade stocks and need losses to offset my gains. How can use that repayment to do that? I read on a website that I may be able to write some of that repayment off as a loss. Was that bogus info or is there a way I can do that?

 

[tranquility]

If the payment was listed on your W-2 and you did not deduct any of your moving expenses against it, because the amount is so great, you can take the repayment off on schedule A line 28 (no reduction of 2%). Or, you can recalculate the year's return where you reported the income without the payment, see the difference in taxes and take a credit on line 71 of the 1040 writing "IRC 1341" in the left margin.

 

[MusicalSunrise]

Thank you

Thank you so much! You made it so easy. I was freaking out over how I would eventually deal with it. I could not find anything this straight forward on the IRS's website or anywhere else for that matter. Thank you.