Thank you for the detailed explanation. I also repaid the signing bonus to my employer last year. Your reply makes it sound like that there are two solutions: a) taking credit b) income reduction using Claim of Rights.
My first question: Are there any material differences between the two methods? At a glance, taking the Income Reduction in TurboTax Online is a much simpler solution. Am I missing something? Why would one opt for the credit method?
Second question: Going down the path of taking the Income Reduction in TurboTax and Claim of Rights, this deduction is only available under Federal. However, when I entered the full amount that I repaid, it adjusted both my Federal and State tax refunds. Does this mean that TurboTax online automatically accounts for both Federal and State (CA)?
Thank you for your time in advance.
