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where to deduct Returned 2018 moving expense

Level 5


Taxpayer received relocation expense payment on 2018 W2 from employer A.

He moved to new job in 2019 with in two year, so had to repay back $5000 to the employer A.

Question is how to report this $5000k returned?

Report on Sch A under moving expense? But this moving expense deduction is nolonger availble.

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4 Comments 4
Level 15

Research repayment under claim of right.

Level 13

I don't know about PTO but, as SJR mentioned, you're looking for a claim of right repayment under code section 1341.

Often the credit is better than the deduction but it will depend on relative marginal tax rates between the two years and other factors.  The deduction will go on 1040 Schedule A (2019) line 16.  The credit will end up on 1040 Schedule 3 (2019) line 13 box d (see the 1040 instructions, page 97).  You pick the one with the best tax result.


Level 15

In the left column, right above General is a search box with a magnifier glass ?, put your very short phrase (one or maybe 2 words) or your form number in the box and hit enter.  In this case use "IRC 1341" and it will list  Credits for repayment... and clicking that will take you to the entry in EIC, Residential Energy ...

Here's wishing you many Happy Returns
Level 5

Thanks for all the responses.

In PTO search box, Search "IRC 1341' did not work, but can be found under EIC, Residential Energy ...Other credit.
Because prior years margin is lower, so I chose to take deduction on Sch A - Other itemized deductions (not Misc deduction subject limited 2%)
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