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Deductions & credits
what year did you receive payment - if the same year there should be an offset against the amount you received. if in a different year and the repayment was $3000 or more IRC section 1341 dictates the methods to get the taxes back. if the repayment was in a different year than received and was less than $3000 sorry the say the tax rules say you can do nothing to get the taxes back
if you qualify you can take as a deduction 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
‎December 30, 2022
4:56 PM