You can either tax a credit or a deduction for this on your Federal return. See this TurboTax help article for instructions for the Federal return.
A Claim of Right Repayment is a deduction you can take in the current tax year if you’re required to pay back income in excess of $3,000 from a previous tax year that you thought you could keep. You reported and paid taxes on the money, not knowing you’d have to pay it back. Examples of this type of income include: the repayment of signing bonuses, moving expenses, unemployment compensation, and other funds.
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