DianeC958
Expert Alumni

Get your taxes done using TurboTax

To receive a credit for the amount that was repaid you need to calculate it manually.

 

  1. Figure your tax without deducting the repaid amount.
  2.  Refigure your tax from the earlier year without including the income that you had to repaid.
  3.  Subtract the tax calculated  in (2) from the tax shown on your return for the earlier year. This is the credit.

 This is the flow in TurboTax (This can only be done in the Forms mode of the Desktop version of TurboTax)

Go to FORMS (top right of main screen) > Form 1040 >Schedule 3 "Other Credits Smart worksheet"

Please enter the credit on line K. 
This credit should show up on Form 1040 line 13b
Link To Publication 525

Information about Repayments in on page 34

[Edited 02/17/20 5:15 PST]

@Traveler65 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"