Solved: The dod over paid me last year and I paid them back. Is that something to report in my taxes
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The dod over paid me last year and I paid them back. Is that something to report in my taxes

 
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New Member

The dod over paid me last year and I paid them back. Is that something to report in my taxes

If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it under the claim of right doctrine.  If the amount of the repayment exceeds $3,000, you have the option of claiming a tax credit instead of taking a tax deduction.  It's a somewhat complex calculation for the credit.

Most taxpayers benefit more from claiming the deduction than the credit.  You can claim the deduction by going to Federal>Deductions & Credits>Other Deductible Expenses.  Proceed through that interview until you reach the question "Do you have any other deductions that are not subject to the 2% limitation?"  Answer yes and enter the deduction on the screen that follows.

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New Member

The dod over paid me last year and I paid them back. Is that something to report in my taxes

If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it under the claim of right doctrine.  If the amount of the repayment exceeds $3,000, you have the option of claiming a tax credit instead of taking a tax deduction.  It's a somewhat complex calculation for the credit.

Most taxpayers benefit more from claiming the deduction than the credit.  You can claim the deduction by going to Federal>Deductions & Credits>Other Deductible Expenses.  Proceed through that interview until you reach the question "Do you have any other deductions that are not subject to the 2% limitation?"  Answer yes and enter the deduction on the screen that follows.

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