Question

Pay Back Employer

Forum|Forum|6 years ago
March 1, 2020
1 reply
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I received money to pay for my student loans from my employer. The money I received was given to me as salary and was taxed. I left the company before I fulled my obligation and had to pay them back the full amount even the amount taken out in taxes. How do I reclaim my taxes when I file my 2019 taxes

O

Opus 17

Employee

If less than $3000, you can't get it back.

If more than $3000, there are two procedures, and you can choose which one is best for you.

1. A special itemized deduction. (This won't help unless you always itemize). This is listed at the bottom of the deductions and credits page under "other uncommon deductions."

2. A tax credit under the IRC 1341 rules. For this, you take a direct tax credit equal to the amount of tax you paid in previous years for this money. You have to figure the tax credit amount yourself, Turbotax does not do this for you. You would have to go back to each previous year and re-figure your tax with and without the extra money. That will tell you the amount of credit you now get. To enter the credit, you need to be using the Turbotax desktop version installed on your own mac or PC from a CD or download. Go to Forms mode and open Schedule 3, go to box 13d, check the box, enter the dollar amount of the credit, and write "IRC 1341" in the space next to the amount.