Background
I had to return a portion of sign-on bonus to my previous employer (Claim of Right Repayment / IRS Pub 525).
- Method 1: 'Claim of Right - Deduction' works both for Federal as well as State Tax Return.
- Method 2: 'Claim of Right - Credit' works only on Federal return?
Question
- How do I apply 'Claim of Right - Credit' for the state tax return?
- Can I claim 'credit' for federal and 'deduction' for state on my taxes for claim of right repayment (by update Schedule A on the State Tax Return)?
