Get your taxes done using TurboTax

As @GeoffreyG stated, if you are repaying more than $3,000 you have the option of either taking a miscellaneous itemized deduction or a tax credit.

For tax years beginning after 2017, you can no longer claim any miscellaneous itemized deductions, so if the amount repaid was $3,000 or less, you aren’t able to deduct it from your income in the year you repaid it.

The Claim of Right Repayment (IRC 1341) tax credit on Schedule 3, Line 12D is the credit for the prior year tax that was paid due to the income repaid, i.e. it is the difference between the tax with and without the repaid income.

See Repayments.