If you received pension benefits in a previous year and paid all or a portion back in 2023, you may qualify for a claim of right repayment.
A claim of right repayment occurs when a taxpayer is required to repay income that they had reported and paid tax on in a previous tax year. The repayment must be of funds that, when received, the taxpayer had a reasonable belief he or she had unrestricted access to.
There are two options. One is for an amount repaid of $3,000 or less. The second is for an amount repaid of more than $3,000. For either option, In TurboTax Online, follow these steps.
- Down the left side of the screen, select Federal.
- Down the left side of the screen, select Deductions & Credits.
- Scroll down to Other Deductions and Credits, and click the down arrow to the right.
- Click Start / Revisit to the right of Other Deductible Expenses.
IRS Publication 525 Taxable and NonTaxable Income, page 37, here, further explains.
In some instances, a tax credit may be computed. See this treatment under Best Answer.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
