Deductions & credits

It depends on if you are using Turbotax online or Desktop.

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's 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

Taking the simple deduction, please follow the steps below:

1. Sign in to your account and open (or continue) your tax return
2. Select Federal, then Deductions and Credits
3. Scroll down to Other Deductions and Credits (you may need to select See All Tax Breaks and/or Show More)
4. Scroll down to Other Deductible Expenses and select Start (or Revisit)
5. Answer the questions until you get to the Did you have any of these other expenses? screen.
6. Select Yes. See the screenshot below:
7. On the Tell us about your other expenses screen, enter the amount of the repayment in the Claim of right repayment over $3,000 box and select Continue

However, if you are using a Turbotax desktop follow the instructions below then click on "Taking the credit in TurboTax CD/Download"

Claim of Right Repayment

See the screenshot below:

@Pbruno94