1. If you amend for the education credit, follow the prompts. See Where do I enter Form 1098-T? You can't amend 2019 for the repayment of income.
2. Page 35 About Publication 525, Taxable and Nontaxable Income gives two methods but only one is available this year. Since you repaid more than $3,000, you can use the method where you claim a credit. These are the steps:
- Figure your 2020 tax as normal, without deducting the repaid amount.
- Locate prior year taxes that are now incorrect. Note the amount of tax liability.
- Refigure your tax from the earlier year(s) subtracting the income that you have repaid.
- Subtract the difference in tax liability for each year.
- Add all the differences together for your 2020 credit allowed.
- Please see example and full details in my other post.
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