AmyC
Expert Alumni

Investors & landlords

1. You repaid more than $3,000 so you will do a tax credit. See how below.

2.The grossed up wages represent the additional FICA tax the employer paid and is not a concern for you, see legal comment.

 

Since you repaid more than $3,000, you claim a credit. These are the steps:

  1. Figure your 2020 tax as normal, without deducting the repaid amount.
  2. Locate prior year taxes that are now incorrect. Note the amount of tax liability.
    1. Refigure your tax from the earlier year(s) subtracting the income that you have repaid.
    2. Subtract the difference in tax liability for the year.
    3. The difference is your 2020 credit allowed. This is your right of claim credit. 
    4. This becomes a credit on your return labelled as IRC 1341. This is schedule 3, line 12d.

Use the desktop program, the online version does not support this credit. If you are online, easy to switch.   

 

  • If you are online user, and have not purchased your software, simply buy the desktop version and download your .tax file so you don't have to do your taxes again. Any trouble, call support, link below. Here are desktop options.
  • If you have paid for your online taxes, call support and tell them the desktop program is required.
  • Please use the following link for a customer support number.

 

Please see example and full details in my other post.

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