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In 2017, my previous company gave me a tuition assistance of $2900. I quit the job and found another one. Recently, in June 2018, the company sent me a letter asking to return the amount since I quit the job within 12 months of the tuition.

I don't mind paying it back, but I'd like to return all taxes I paid for this tuition. Somehow the company deducted $1109 from the total amount. The tuition assistance was included in W2, as below:

federal             $725.00 
fica-oasdi          $179.80 
st-whld oh          $101.50 
lo-whld cincinnati  $ 60.90 
fica-med            $ 42.05
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  • 3
    Might be more appropriate on Personal Finance & Money SE. – StephenG Jun 27 '18 at 3:04
  • Are you asking how to get a refund on taxes paid from the government, so that you can pay this money back to the company? I don't think it works that way... – Steve-O Jun 27 '18 at 3:05
  • Is there a particular reason why you can't simply ask the company how much they are expecting you to pay them and pay that amount? – Cronax Jun 27 '18 at 9:56
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Somehow the company deducted

The company did not "somehow" deduct taxes. They are required by law to collect taxes on the money paid to employees and send it to the government. This is known as Tax Collected at Source (TCS) or Tax Deducted at Source (TDS).

I'd like to return all taxes I paid for this tuition

The tax money is with the government so you cannot return it, at least not directly. Instead you would have to return the full tuition assistance to the company, and then claim a tax refund if the law allows it.

If tax refund does not apply to this category of reimbursement (tuition assistance), that's too bad, you just spent $1109 to learn an important financial lesson: always understand the tax implications before you get any kind of "bonus" reimbursement.

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The company paid $2900, $1800 to you and $1100 to various government places. What should happen is that you pay back $1800, and they ask the various government places for the $1100. Not your problem, you never received that money, so you don’t pay it back.

If the company asks for $2900 then you say “no”.

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  • I'm not sure if this is correct. When OP files their income tax return, this money will show up as "taxes withheld" (at least the federal & local taxes will), but there will be no corresponding income. If everyone did their math right, these taxes will be refunded to OP. – Mike Harris Jun 27 '18 at 11:05
  • The Company asks $2678.15. I believe they decided to drop couple taxes from $2900 amount. – Timur Jun 27 '18 at 11:33
  • It looks like they're asking you to repay the income taxes, since you'll be refunded them when you file, but you do not have to repay FICA (social security, etc.) – Mike Harris Jun 27 '18 at 11:49
  • So refund the amount they payed you. Tell them you are refilling your tax return and when you get the money from the government you will re-pay the taxes minus the cost for re-filling. – Martin York Jun 27 '18 at 19:35

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