The Turbotax program does not support method 2 :
Method 1. Figure your tax for the year of
repayment claiming a deduction for the repaid
amount.
Method 2. Figure your tax for the year of
repayment claiming a credit for the repaid
amount. Follow these steps.
1. Figure your tax for the year of repayment
without deducting the repaid amount.
2. Refigure your tax from the earlier year
without including in income the amount
you repaid in the year of repayment.
3. Subtract the tax in (2) from the tax shown
on your return for the earlier year. This is
the credit.
4. Subtract the answer in (3) from the tax for
the year of repayment figured without the
deduction (step 1).
If method 1 results in less tax, deduct the
amount repaid. If method 2 results in less tax,
claim the credit figured in (3) above on Form
1040. (If the year of repayment is 2019, and
you're taking the credit, enter the credit on
Schedule 3 (Form 1040), line 13, and see the
instructions there.)
