I got 5k for relocation when I join my prior employer in 2010 and it was considered as my income. My offer letter stated that if I terminate employment within 2 year of service that I must repay the relocation fee. I resigned in 2011 and paid back 5K. My prior employer send my letter to show the money was received. But I could n't get another W2. Should I deduct 5K in the tax return?

Should I take it as loss or adjustment for 2010?

Appreciate your suggestion!

You should claim $5k in 2011. Put (5000) as "Other Income." Also enter Relocation amount repaid.
If you are filing paper return, you may attach the copy of letter received from your employer.

Thanks, MukatA.

Another question, the company also paid $200 consulting fee for my relocation company in 2010. When I left the company in 2011, I also paid back $200. So total is $5200. Could I claim that $200?