Deductions & credits

@childclan    Yes, if the amount of repayment is over $3,000, you'll be able take a Claim of Right Repayment deduction. 

While you still have to repay the money, there are a couple of ways you can get a tax break by reporting the repayment on your current year tax return:

1. Take a simple deduction of the repaid income from the current year’s income (this is the easiest option for taxpayers who itemize their deductions).
2. Use TurboTax CD/Download to calculate the amount of tax you overpaid and take a refundable credit. This is the more valuable option, though it requires a bit more work.

Whichever option you choose, we’ll walk you through the steps.

• Taking the simple deduction Scroll down to this section and expand it for the instructions.
• Taking the credit in TurboTax CD/Download  Scroll down to this section and expand it for the instructions.

[Edit 2-6-22|5:36 am PST]