Repayment this is covere dby oRC 1341 and the related regultions
since repyament occured in the following year the repayment AND the repayment was more than $3,000 you
can take as a deduction in th eyear of repayment on schedule A line 16 denote as IRC 1341 repayment OR
recompute the taxes in the year you received the payment by excluding the amount repaid.
the decrease in taxes is taken as a credit in the year of repayment on schedule 3 line 13d denote as IRC 1341
there is no longer a 2% reduction if you use schedule A.
When determining whether the amount you repaid was less than $3,000, consider the total amount being repaid on the return. Each instance of repayment isn't considered separately.
unlesss it is more than $3,000 you cannot claim the repayment as either an itemized deduction or tax credit.
for more info and examples see IRS PUB 525 page 37
https://www.irs.gov/forms-pubs/about-publication-525
