Yes and Yes. But you will need the 2020 CD/download software for your 2020 taxes to do steps #1 and #2, and the 2021 Cd/download software to do step 4.
You can read what the IRS says about this on page 36 in Pub 525.
Method 2.
Figure your tax for the year of repayment claiming a credit for the repaid amount. Follow these steps.
1. Figure your tax for the year of repayment without deducting the repaid amount.
2. Refigure your tax from the earlier year without including in income the amount you repaid in the year of repayment.
3. Subtract the tax in (2) from the tax shown on your return for the earlier year. This is the credit.
4. Subtract the answer in (3) from the tax for the year of repayment figured without the deduction (step 1). - do this by using Forms mode on your current return to make an entry on line 13d on Schedule 3 (1040).
In this year's TurboTax, there is no other way to get a number on line 13d.
@Ali37
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