If you had to repay to an employer wages you had reported to the IRS as income in an earlier tax year, and which you paid taxes on, you could be eligible for this deduction.
You may be eligible to deduct the amount you repaid from your income for the tax year in which you made the repayment. The type of income you reported will decide the type of deduction you can take.
Generally, you’ll be able to deduct the repayment on the same form or schedule you used to previously to report it to the IRS as income. For example, if you are self-employed and reported it as self-employment income, you would deduct it as a business expense on Schedule C, Form 1040. If you are an employee and reported the income as wages, you would deduct it as a miscellaneous itemized deduction on Schedule A.