DanielV01
Expert Alumni

Get your taxes done using TurboTax

There are two options: deduct the repayment (subject to itemized deductions, however), or claiming a credit.  I recommend the "credit" option unless you are already itemizing deductions and your income this year is higher than last year.  The credit method determines how much less tax you would have in 2017 because of this income you have had to repay.  

Critter #2 gives excellent instructions on how either method may be entered into TurboTax in the following link (the Pub referenced is from 2014, but the pub for this year has the same provisions):  https://ttlc.intuit.com/replies/7016599

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