As one of Mista Gary’s misplaced employees (one of the guys that was at home and the office wouldn’t return calls to come back to work for months), I ended up finding another job. In doing so, I breached the contract for the Chief OSV 6000 training program, and just paid back the $2000, as part of the promissory note. Anybody else do the same and plan on filing this as a deduction for work expenses? Before I do, I’m going to verify with my local tax office.
Look up IRS Topic 513 Work-related education expenses to be sure, but it sounds like it is tax deductible.
Tell them to shove it! No work means they broke the contract.
[QUOTE=KrustySalt;190612]Tell them to shove it! No work means they broke the contract.[/QUOTE]
Right? This doesn’t make much sense to me (him having to pay them back)
[QUOTE=Colston1285;190667]Right? This doesn’t make much sense to me (him having to pay them back)[/QUOTE]
When we all signed the promissory notes. There’s a clause in the writing about having to pay it back regardless of how employment ends.
[QUOTE=KrustySalt;190612]Tell them to shove it! No work means they broke the contract.[/QUOTE]
I would agree. It’s not like he quit. But, Fork, you should review any pertinent paperwork you have.
A good tax accountant or attorney should be able to advise. Hell, I’d ask the IRS first- it’s free to do so.
I was able to deduct my own out-of-pocket training costs.
There was a line item in my tax software for something almost exactly like “promissory note to employer” or something similar.
I tried to look it up but it’s an itemized deduction and I didn’t have enough to itemize so I can’t find that line.
What did you have to pay? It was a packet that costs nothing. HOS tried the same crap and they have been burned because it wasn’t legal at times. Either they used grant money or some verbiage was wrong. Do you think ECO will spend the money to take you to court over $2k? They would spend that much and more in legal fees.
[QUOTE=KrustySalt;190774]What did you have to pay? It was a packet that costs nothing. HOS tried the same crap and they have been burned because it wasn’t legal at times. Either they used grant money or some verbiage was wrong. Do you think ECO will spend the money to take you to court over $2k? They would spend that much and more in legal fees.[/QUOTE]
Actually, what they could do is hound him for awhile, then send the account to collections. That’s why the devil is in the details.
[QUOTE=Capt. Phoenix;190747]There was a line item in my tax software for something almost exactly like “promissory note to employer” or something similar.
I tried to look it up but it’s an itemized deduction and I didn’t have enough to itemize so I can’t find that line.[/QUOTE]
I’m claiming it. Going to put the note in with training expenses…throwing it in with the dang STCW Gap Closing Class expenses as well. Feel like I’ve spent the whole year in class! 
Candidates in a large OSV training program have to get 84 days in a training position. That doesn’t "cost nothing "
[QUOTE=Flyer69;190789]Candidates in a large OSV training program have to get 84 days in a training position. That doesn’t "cost nothing "[/QUOTE]
Depends on how the training was done i guess. To each their own.
[QUOTE=KrustySalt;190774]What did you have to pay? It was a packet that costs nothing. HOS tried the same crap and they have been burned because it wasn’t legal at times. Either they used grant money or some verbiage was wrong. Do you think ECO will spend the money to take you to court over $2k? They would spend that much and more in legal fees.[/QUOTE]
The only worry I would have had with it was them sending it to a collection agency and my credit getting a slap. Wasn’t worth the risk to me. I walked away with another license, and 84 days @$770/day as an extra engineer on board. I signed the note and held up my end of the deal, Chouest…not so much! 
Speaking of which, I wonder how they are reporting the income they are receiving from said notes? If they did use grant money, and now turning around and expecting repayment…hmm
[QUOTE=ForkandBlade;190836]Speaking of which, I wonder how they are reporting the income they are receiving from said notes? If they did use grant money, and now turning around and expecting repayment…hmm[/QUOTE]
Drop a Dime to the IRS, normally, I would shy away from doing this but in this case, I would make the call as it does not sound like you will be going back to work there any time soon.
It really pisses me off the way these company’s take advantage of guys when they lay them off. This is the reason that I never took a dime from any company when it came to my License!
[QUOTE=catherder;190780]Actually, what they could do is hound him for awhile, then send the account to collections. That’s why the devil is in the details.[/QUOTE]
They withhold the money from your last paycheck.