You repaid the money in 2022, so it goes on your 2022 return, probably as an IRC 1341 credit.
While you are in the 2021, go ahead and deduct the 16,000 from income to see the difference in the tax liability and note that difference somewhere safe so you can use it on next year's return as a credit unless you choose the other method and itemize deductions.
Recap: Do not deduct it in 2021 but do know the taxable difference.
Reference: What is a Claim of Right Repayment.
@aidenpearce
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