IsabellaG
Expert Alumni

Get your taxes done using TurboTax

First of all, you do report the amount received in 2015 as shown on your SSA-1099.

For 2016, your repayments will create a situation known as a Claim of Right tax issue. Please see this link: https://www.irs.gov/publications/p17/ch11.html#en_US_2015_publink1000171933

If you pay back less than $3000, you will deduct your repayments as a Miscellaneous Deduction on Schedule A.

If you repay more than $3000, you have the option of taking a tax credit under IRC Section 1341 for the year of repayment. Please see these answers for instructions on how to do that in TurboTax for next year.

https://ttlc.intuit.com/replies/3730631

https://ttlc.intuit.com/replies/3730815

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