you get to choose between taking a schedule A tax deduction in the year repaid for the gross wages repaid or a tax credit in the year repaid based on how much in income taxes you paid in the year of receipt on the amount repaid. This is done by refiguring the taxes for the year of receipt by excluding the gross wages repaid.
deduction or tax credit, which is better? you have to figure both ways!
the w-2C for the year of receipt would only. reflect a reduction in boxes 3,4,5,6 and no amended return need be filed.
not sure what you're talking about. "I would then include the amount I owe, over $3000, in "other deductible expenses and "claim of right payment over $3,000" and input the amount repaid. Is that correct?
only one entry on the 2023 tax return for this. either an itemized deduction on schedule A or a tax credit on schedule 3.
