Inquiry on tax refund?

Question

I worked in a hospital for 6 months and resigned my job as my husband got job and moved to Oklahoma. Since the hospital spent all the expenses for bringing us here from India, they asked me the refund of the above expenses. The amount they asked me $ 9700.00 and we gave them post dated cheques and is being collected from us on monthly basis. So far we paid $ 5700.00. We did not receive any receipt for the payment. I would like to know if I am eligible for any tax refund on the above amount.

Answer 1

Yes you are eligible for a tax refund on the amount you pay back. You can use the canceled checks as proof that you paid it back. You can probably get a letter stating that you did pay that back from the previous employer.

If the $9700 moving expenses were reported as income and the money is paid back in the same year the income was received you can net the repayment amount against the amount reportable as income. (On the amount you pay back)

If you received the money last year and repaid it this year for

More than $3000 two options

1) Claim an itemized deduction for the full amount of repayment
(not subject to the 2% AGI limitation) or

2) Claim a tax credit on the current year's return. Recompute the tax for the earlier year as if the income had not been reported. The difference between the recomputed tax and the actual tax can be claimed as a tax credit on the "other payments" line of the current year's Form 1040 (write "IRC 1341") next to the line.

Answer 2

You should be able to take the $9700 as a moving expense. Before you do so you should have a tax professional look over your documents from the hospital. You should find some way to document that you paid this money like canceled check or some other bank record that it was taken from your account.

Answer 3

I was also updated the night before. I had a DD of 1/31 ever since my taxes were accepted, and then I got one of 1/30.

Answer 4

no. why would you get a refund on money that the hospital originally paid. all you are doing is reimbursing them for what it cost them to move you since you broke the agreement!!!