Overpayment of what?
When you pay back income that you received, you report the repayment in the year that you actually pay it back. So if you have not yet paid it back, you have nothing to report on your 2022 tax return. If you repay more than $3,000 in 2023 you will report that on your 2023 tax return. If you repay $3,000 or less there is no tax adjustment, so you don't report the repayment at all.
If you receive an overpayment and pay it back in the same year, you reduce the amount of income you report by the amount you repaid, so you report only the amount of income that you actually kept.
If you need more help, we need to know all of the following.
- What kind of income was overpaid to you?
- In what year did you receive the overpayment?
- Did you, or will you, report the overpaid amount as income on your tax return for the year that you received it?
- In what year did you, or will you, pay it back?
- What is the exact amount that you will pay back?
