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May 12, 2021
Question

Question about claiming credit for wage repayment?

  • May 12, 2021
  • 1 reply
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I was overpaid by 4580$ by my employer in Nov 2019. I waited for the corrected w2 to file 2019 taxes. I got the corrected w2 but there was no correction in income, which is accurate as the IRS considers that in case of tan overpayment you still had access to those funds. So 2019 taxes were not impacted by this at all, I got overpaid, had to pay taxes on the overpaid amount and that was it as far as 2019 taxes are concerned. But I repaid the amount in 2020. Trying to figure out how to claim credit for the 2020 taxes. I have had several calls with turbotax support and I was told that the online version does not have the ability to do this and that I should try and see if turbotax premier desktop version might  have a way to do this. Anyone have any experience with something similar? 

    1 reply

    AmyC
    Employee
    May 14, 2021

    Yes. Your payment is over $3,000.  Follow the steps in What is a claim of right repayment?.

     

    For more information, see About Publication 525, Taxable and Nontaxable Income page 36, method 1 is easiest for you.

     

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