You cannot take a credit in 2021 for something you paid back in 2020. You would need to Amend Your Return for 2020 to reduce your income by the $5,000.
When you go to Amend your 2020 return, you will take the following steps to reduce the income by $5,000.
- Federal
- Income and Expenses
- Scroll down to Less Common Income and click Show More
- Start next to Miscellaneous Income
- Start next to Other Reportable Income
- enter description as repayment of 2019 bonus in 2020 then for amount enter -$5,000
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