Get your taxes done using TurboTax

All of your questions have one thing in common, the 2022 return. This tell me you didn't  properly follow the steps to do the IRC 1341 because you have to go into the previous year's taxes, look at the tax liability, removed the income, look at the new tax liability. The difference is what goes on this year's tax return. The fact that you are asking "what if" tells me you did not do this so you could not have added the difference to this year's return.

Please follow these steps:

1. Go to 2022 return
2. Save of copy of your 2022 return.
3. Look at the tax on your income - make note of the number.
4. Choose to add a state to get into the program.
5. Subtract out the paid back income,
6. Find the difference in tax liability by subtracting the new amount from the original return.
7. Close out the 2022 return

Go into 2023 using the desktop version - enter the credit.

Input that number for your tax credit as shown in the post above

 See What is a Claim of Right Repayment.

The IRS 1341 goes to sch 3 and reduces your tax liability by the same amount that it would have in 2022. Therefore, if you had a much smaller tax liability in 2023, it would not have the same effect.

See Repayments in Pub 525. Once you have completed these steps, you will see the changes and know how you are affected.