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Deductions & credits
since the repayment was more than $3,000 you can take a credit on your 2023 1040 as follows
for federal purposes recompute the federal taxes for 2021 by excluding the payment (you would reduce box 1 wages by the $6K). the decrease in taxes is taken as a credit on schedule 3 line 12d denote as IRC 1341. we need to know the state to determine what the laws are there
‎November 7, 2023
8:05 AM