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Can I deduct money overpaid to retail clerks union retirement. They reassessed my benefits and had to pay back $2,125.00?
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June 4, 2019
2:38 PM
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Retirement tax questions
Yes, you can deduct it. Will it affect your return? Maybe.
The Claim of Right allows you to take a deduction (or credit) for repayment of income that was taxable in a prior year. If you don’t itemize, that won't be helpful to you!
IF you pay back less than $3000, the repayments are deductible on Schedule A (subject to the limitation of 2% of your Adjusted Gross Income.)
To report the repayment:
- Log into your return
- Click on Federal
- Click on Deductions and Credits
- Scroll to Other Deductions and Credits.
- If needed, click on the Show more button.
- Click the button next to Other Deductible Expenses
- The Generation-Skipping tax question doesn't apply to you.
- On the next screen, you will be asked if you have any of the less common expenses. (One of the expenses listed is the repayment of $3000 or less.)
- On the following screen, you can enter a description and amount.
June 4, 2019
2:38 PM