@carf01 wrote:
- "the employer only needs to give you documentation of the taxable amount repaid" you means an invoice or something like that . there is not a specific form from IRS ??
- What do you mean with " it appeared that you had an unrestricted right to it " in the text below? “ You can do it as a deduction on schedule A or a tax credit on line 18d of the 1040 form if when you included the income in a previous year, it appeared that you had an unrestricted right to it. “
thanks a lot
1. You will need some type of documentation to prove that the amount was repaid if the IRS ever questions your tax return including the repayment. A letter from the employer on their letterhead and a receipt for the amount repaid would suffice.
2. That is what a "Claim of Right" is referring to - This means that at the time you included the income, it appeared that you had an unrestricted right to it.
