My pension overpaid me in 2017, and I repaid the overpayment in 2019. My former employer gave me a letter acknowledging the repayment, but did not issue a revised 1099R. I am filling out an Amended 2017 Return. How do I account for the repayment and reduction in my 2017 income?
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You do not file an amended 2017 return. Instead, you report the repayment on your 2019 tax return.
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Repayments. This situation is described in IRS Publication 525. pgs 34-35. If the amount is more than $3000, you can take a itemized deduction, on line 16 of schedule A or you can take a credit. The credit is computed by refiguring the tax return from the previous year as if the income had not been received. Then the difference in tax is claimed as a credit on the current year's return. In the forms mode (the forms mode is not available in the on-line versions of TurboTax[TT]), you can use the line 74 smart work sheet to enter the credit amount on line 74; select item D, claim of right under IRC 1341 for repayments. TT will enter "I.R.C.1341" on the line next to box d on line 74 of form 1040 (schedule 5). TT does not do the credit calculation or compare it to the alternate deduction.
So, the taxpayer has the option of either claiming the credit or deducting the repayment as a miscellaneous itemized deduction, whichever provides the greater benefit. But, you cannot file an amended prior year return.
If the amount is $3,000 or less, no deduction or credit is allowed. In the past, a miscellaneous itemized deduction, subject to the 2% of AGI threshold, was allowed. But, all miscellaneous itemized deduction, subject to the 2% of AGI rule went away in 2018. I've seen nothing yet to indicate if there will be an exception for repayments of income
You do not file an amended 2017 return. Instead, you report the repayment on your 2019 tax return.
_____________________________________________________________________________________________________________
Repayments. This situation is described in IRS Publication 525. pgs 34-35. If the amount is more than $3000, you can take a itemized deduction, on line 16 of schedule A or you can take a credit. The credit is computed by refiguring the tax return from the previous year as if the income had not been received. Then the difference in tax is claimed as a credit on the current year's return. In the forms mode (the forms mode is not available in the on-line versions of TurboTax[TT]), you can use the line 74 smart work sheet to enter the credit amount on line 74; select item D, claim of right under IRC 1341 for repayments. TT will enter "I.R.C.1341" on the line next to box d on line 74 of form 1040 (schedule 5). TT does not do the credit calculation or compare it to the alternate deduction.
So, the taxpayer has the option of either claiming the credit or deducting the repayment as a miscellaneous itemized deduction, whichever provides the greater benefit. But, you cannot file an amended prior year return.
If the amount is $3,000 or less, no deduction or credit is allowed. In the past, a miscellaneous itemized deduction, subject to the 2% of AGI threshold, was allowed. But, all miscellaneous itemized deduction, subject to the 2% of AGI rule went away in 2018. I've seen nothing yet to indicate if there will be an exception for repayments of income
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