ErnieS0
Expert Alumni

Deductions & credits

@douglasjia You can claim your repayment as a tax credit on your federal return if the deduction does not lower your tax.

 

It takes some work. Figure out what your tax would have been without the bonus and claim the difference as a credit on your 2020 tax. For example, if your 2019 tax liability was $10,000 with the bonus and $9,000 without it, then you would enter a $1,000 tax credit on your 2020 return.

 

If you used TurboTax last year, you can amend your return and subtract $3,100 off your W-2 to figure your tax liability without the bonus.

 

Then enter the tax difference in TurboTax. You will need the CD\Desktop version. Champ @Hal_Al explains how in How do I claim a Claim of Right CREDIT (not as a deductible expense) on TurboTax? I see the option i...

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