In your situation, you could use a "claim of right" Section 1341 credit since the repayment was more than $3,000. This is a federal tax credit for taxpayers who reported income in the previous year, but have to repay the income. The Section 1341 credit is found on your 1040, Schedule 3. If you repay them in a later tax year, you can deduct the repayment as an itemized deduction on your Schedule A (Form 1040), Other Itemized Deductions.
For the method on how to calculate your amounts for Schedule 3, please see Publication 525 and go to page 36.
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