if the repayment was more than $3,000 you
can take a deduction for the gross repayment (wage amount) on schedule A line 16 denote as IRC 1341 repayment
OR
recompute the taxes in the year you received the payment by excluding the payment.
the decrease in taxes is taken as a credit on schedule 3 line 12d denote as IRC 1341
if less than $3,000 the tax laws say you are not entitled to a deduction or credit. state laws may be different
for more info see pub 525
https://www.irs.gov/pub/irs-pdf/p525.pdf
