When my husband was hired on by a new company, they paid his moving expenses and gave him a sizable bonus which we paid tax on. Less than a year later, he quit his job and this year had to pay the company back $40,000. Can we claim this as a loss? Is there any way we can get the tax money back that we originally paid on this amount since we had to give it back?

You can claim some of the money as an itemized deduction of your 2008 tax return.

You may also get the 2007 W-2 changed and amend your 2007 accordingly.