It means the ability to claim a credit for income you claimed on a previous tax year return, but had to pay that income back in a following year.
"If you paid back income of $3,000 or more reported in a previous year, due to having been paid in error, you can deduct that amount in the current tax year. Also known as a "claim of right," it is a credit for taxes paid on wages not ultimately received from the previous year."
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