Question

My bank overpaid interest last tax year (in 2021) and deducted it from my account this tax year (in 2022). How do I handle this?

Forum|Forum|3 years ago
March 18, 2023
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My bank overpaid interest on my account in 2020 and 2021 and deducted the overpaid interest from my account in 2022. How do I handle this? It is a foreign bank, so they do not provide a 1099-INT form, instead I just receive a letter of notification, which I always input manually.

Employee

Since the claw back occurred in 2023, you'll deal with this on your 2023 tax return next year. Just keep all that paperwork.

PostgalaxyAuthor

Thanks, but this occurred in 2022, so I believe I have to reflect this in my current return.

Employee

If the claw back occured in 2022:

Under the Deductions and Credits tab scroll down to "Other Deductions and Credits" and under that select "Other Deductible Expenses".

Next, select NO to indicate this is not dealing with any generation skipping taxes.

Then select YES to indicate this is a repayment of less than $3000.

You should be able to take it from here.