If the amount you repaid was more than $3,000, you can deduct the income you repaid on your 2020 tax return. [It is not a credit.] To do this, please follow these steps:
- Click on Federal Taxes > Deductions & Credits [In TT Self-Employed: Personal > Deductions & Credits > I'll choose what I work on].
- Scroll down to the Other Deductions and Credits and click on the Start/Revisit box next to Other Deductible Expenses.
- On the next screen, Did you have any of these less common expenses, click the No box.
- On the screen, Did you have any of these other expenses click the Yes box. [The list includes Claim of right repayment over $3,000.]
- On the next screen, Tell us about your other expenses
- Enter the amount of the Unemployment Compensation you repaid.
The amount will appear on Schedule A, line 16.
Missouri does not have a claim of right doctrine similar to the Internal Revenue Service. However, claiming the IRC 1341 deduction on your federal return reduces your taxable federal income, which, in turn, reduces your MO taxable income.
@ajpaschke
