@mikeyromo999 wrote:
Around August of 2019, i finished paying a debt of $3,500 to the US. Navy, the form they sent me said that I could use it as deduction to my 2019 taxes, I payed them for an overpayment of that amount. In the span of 6 months in 2019
If the repayment was not shown in any military W-2 you received for tax year 2019 then you will have to amend the 2019 tax return that was filed to report the repayment.
See this TurboTax support FAQ for amending a 2019 tax return originally completed and filed using TurboTax - https://ttlc.intuit.com/community/tax-topics/help/how-do-i-amend-a-2019-return-in-turbotax/01/123845...
Since the repayment was greater than $3,000 there are two distinct way to report the repayment.
One is entering the repayment as an itemized deduction on Schedule A. Your total itemized deductions on Schedule A would have to exceed the Standard Deduction for your filing status to have any tax benefit.
The second is to enter the repayment as a Claim of Right credit on the Form 1040. Using the Claim of Right credit means that you would have to install the TurboTax 2019 amend software on a personal computer.
To claim the repayment as a deduction on Schedule A -
Click on Federal Taxes
Click on Deductions & Credits
Scroll down to Other Deductions and Credits
On Other Deductible Expenses, click the start or update button
On the next screen, Did you pay any generation-skipping taxes in 2019? click on No
On the next screen, Did you have any of these less common expenses? click on No
On the next screen, Did you have any of these other expenses? click on Yes
On the next screen, Tell us about your other expenses enter the repayment amount in the box labeled Claim of right repayment over $3,000 and Continue
To claim the repayment as a credit on Form 1040 -
Download the 2019 amend software for Windows from this website - https://turbotax.intuit.com/personal-taxes/cd-download/amend/ty19/
If you used the TurboTax online editions for tax year 2019, download the tax data file.
To access your prior year tax returns sign onto the TurboTax website with the User ID you used to create the account - https://myturbotax.intuit.com/
Scroll down to the bottom of the screen and on the section Your tax returns & documents click on Show. Click on 2019 and Click on Download .tax file
Install the 2019 amend software. Open the TurboTax program. Click on File in the upper left of the desktop program. Click on Open Tax Return. Browse to the location where the tax data file was downloaded.
When the tax return has been opened -
Click on Federal Taxes
Click on Other Tax Situations
Scroll down to Other Tax Forms
On Amend a return, click on the start button
Follow the instructions until you land on the What do you need to change on your return? screen
Click on Forms in the upper right of the program screen.
When in Forms mode click on 1040/1040SR Wks on the left of the screen to open the worksheet.
With the worksheet open scroll down to Schedule 3 Part II
On the Other Payments and Credits Smart Worksheet Line D, enter the Claim of Right, IRC 1341 tax credit amount.
Click on Step-by-Step in the upper right of the screen.
Click on Done and follow the instructions to file the amended tax return.
To calculate the Claim of Right credit -
Go to the IRS Publication 525 (2019) page 35 using Method 2 - https://www.irs.gov/pub/irs-prior/p525--2019.pdf#page=35
