Question

If an over-payment was established as debt and reported as taxable income, then i settled my debt, how do i remove the paid debt from my taxable income?

Forum|Forum|4 years ago
February 9, 2022
1 reply
0 views

I recieved DFAS FORM 705, stating it may be used to assist in reducing my tax liability for 2021.

TurboTax Deluxe Online

If you paid taxes on income that you had to pay back in a later year, you can claim a deduction or credit to offset the tax you had to pay on it in the earlier year. Generally, if the amount is more than $3000, it is known as a Claim of Right- for details and instructions on how to enter, see What is a claim of right repayment?