I was engaged in a contract to move out of state for a particular audit of a client. My firm paid my moving expenses and all other expenses which amounted to $19K. Upon terminating my contract early, I had to repay these wages in the subsequent year. Can I claim the repayment of wages on the return the year I paid them back?

I guess so; you can deduct moving expenses that you repaid as wages. Keep your receipts for documentation when you file your taxes.in general, You can only deduct expenses that your employer does not reimburse. Moving expenses are reported on IRS Form 3903 , with the total expenses also reported on Form 1040. Generally, you cannot deduct personal, living, or family expenses. Employee business expenses are reported on sch A of your tax return.)Therefore, your itemized deductions, including your eligible business expenses, need to be greater than your standard deduction.If they are, then you can itemize and maybe save some taxes.Also, for your employee business expenses to be itemized on schedule A, they have to be greater than 2% of your AGI.

What if the repayment amount included both moving expenses and bonus amounts?

your bonus might be itemized on your last pay stub for the year. It might have a line for regular wages, and federal tax withheld, then a line for your bonus and federal tax withheld. your employer may label your bonus amount in box 14 of your W-2, but should add the amount to your regular wages and include the amount in Box 1 of your W-2. Total federal tax withheld (regular wages and bonus) will be in Box 2.

Claiming a deduction for eligible employee expenses is a two-part process. You'll first need to complete the IRS form for employee business expenses. You'll use Form 2106, if you receive any reimbursements from your employer for your costs. You'll use Form 2106-EZ if you do not receive any reimbursements. Next, you'll transfer your deduction to IRS Schedule A and attach both forms to your tax return. Your taxable income is reduced if the total of your Sch A deductions is more than your standard IRS deduction for your filing status.