if in a year following the year of receipt the repayment is more than $3,000 you can take as a deduction on schedule A line 16 denote as IRC 1341 repayment OR recompute the taxes in the year you received the payment by excluding the payment. the decrease in taxes is taken as a credit on schedule 3 line 12d denote as IRC 1341. if the repayment is less than $3,000 you get no tax benefit.
