in 2023 you have two options. 1) take it as a deduction on line 16 of schedule A which means you have to itemize to get any benefit. you would indicate it as a "Section 1341 repayment". 2) the other option is you recompute your taxes for 2022 without that $10K (reduce box 1 of W-2 by $10k) the decrease in tax is taken as a credit on your 2023 return. this is usually much better than the deduction method the credit is reported on line 13d of schedule 3. how you get there is a mystery because i went through step by step and never encountered a question about taking a credit for income repayments section 1341 - claim of right.
repayments
