Hello! I work in insurance, and in 2021 I got paid for an insurance policy that was cancelled at a later date. A chargeback was issued, and a debt was created for the same amount that I got paid.
I got notice of this issue some time later, in 2022, and paid the debt off, but I still got a 1099 for this money paid to me, which I paid back to them. Can I deduct this chargeback debt paid in my 2021 tax return? Or must it go on 2022’s tax return?
Thank you for your time!
