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I received certificate for income tax adjustment with amount I repaid more than 3000. How can deduct the amount in turbo tax. thank you

Forum|Forum|7 years ago
June 5, 2019
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TurboTax Premier Windows

Best answer by DanielV01

It depends. First, review the IRS procedure on claim of right repayments by clicking on the following link: Repayments (Claim of Right. The website has not yet updated for Tax Year 2017, but the law and treatment has not changed. You can find this same information in the 2017 PDF version: Publication 525 - IRS.gov and going to pages 33 and 34).

If your greater tax benefit is mentioned in Method #1, you may enter it by logging in to your TurboTax account, clicking on Take me to My Return, and then on Deductions & Credits. Once there, go all the way to the bottom of the screen and follow the instructions you find in the next four screenshots:

DanielV01

Employee

Two questions: Did you itemize last year, and is that figure from Federal or a State Tax adjustment?

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S

samg2020Author

I did itemize last Year and amount was overpayement which was taxed and I have to pay it after tax. I paid both federal and state tax on that amount

DanielV01

Employee

Was this a repayment of income, federal income tax, or state tax?

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S

samg2020Author

Federal

DanielV01

Employee

It was an income adjustment. Please see my answer and look at the publications which provide excellent guidance.

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DanielV01Answer

Employee

It depends. First, review the IRS procedure on claim of right repayments by clicking on the following link: Repayments (Claim of Right. The website has not yet updated for Tax Year 2017, but the law and treatment has not changed. You can find this same information in the 2017 PDF version: Publication 525 - IRS.gov and going to pages 33 and 34).

If your greater tax benefit is mentioned in Method #1, you may enter it by logging in to your TurboTax account, clicking on Take me to My Return, and then on Deductions & Credits. Once there, go all the way to the bottom of the screen and follow the instructions you find in the next four screenshots:

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"