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To expand a bit on point #3 from Opus' first answer, I absolutely would NOT repay the full $10,000.  I would repay $10,000 minus Social Security and Medicare tax (in most cases, minus $765, for a total repayment of $9,235, but that could possibly vary if your wages were very high).   Your former employer will be amending their payroll forms to be refunded that Social Security and Medicare tax.  There is absolutely no reason why you should pay that to your employer AND that your employer be refunded that amount from the IRS.

This seems to be an issue with TurboTax not providing the completed prior year 2023 online tax return for certain users. You will have to contact TurboTax support for assistance with this problem.  See this TurboTax support FAQ for contacting support - https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/turbotax-phone-number/L0Od33nMQ_US_en_US?uid=lfgviwbm

@whphillips wrote: Thank you! I appreciate your time and expertise- So that I understand, if I received the bonus last year 2024 and repay it back in 2025, I claim the deduction (in 2026 actual year) for the 2025 tax year? I do itemize because I have rental properties.  Since the repayment is made in 2025, you claim the deduction or credit on your 2025 tax return, which you file in Spring 2026 (generally by April 15, 2026).    Itemized deductions are not rental expenses.  Itemized deductions refer specifically to deductions on schedule A for medical expenses, state and local taxes, personal mortgage interest (not rental interest) and gifts to charity.  If your itemized deductions are less than the standard deduction, you would use the standard deduction instead on your tax return (check to see if you have a schedule A or not).  If you did not have a schedule A on your 2024 tax return and your finances are not expected to change in 2025, then you probably would not get the full benefit from the deduction method of claiming the repayment.   You are allowed to calculate the repayment both ways (deduction method and credit method) and use the one that is best for you (although as I said, there would be an audit risk if you use the credit method but you did not have a reasonable expectation at the time of the bonus that you had an unrestricted right to the bonus). 

After you have started the amended return, you will make your changes in the interview screens.  These entries will then pull into your amended return.  If you are using a Desktop product, you can save your amended return by using the save as feature and rename the file to reflect that the return is an amended state return.  Please see this FAQ for additional guidance.   @dbeale 

 If you started in the Free Edition and entered any data that required any extra forms or schedules, you have to upgrade to a paid version and if you are watching the screens carefully you are alerted to the upgrade.       TurboTax Online: Important Details about Filing Simple Form 1040 Returns If you have a simple Form 1040 return only (no forms or schedules except as needed to claim the Earned Income Tax Credit, Child Tax Credit or student loan interest), you can file for free yourself with TurboTax Free Edition, or you can file with TurboTax Live Assisted Basic at the listed price. Roughly 37% of taxpayers are eligible. Examples of situations included in a simple Form 1040 return (assuming no added tax complexity): W-2 income Interest, dividends or original issue discounts (1099-INT/1099-DIV/1099-OID) that don’t require filing a Schedule B IRS standard deduction Earned Income Tax Credit (EITC) Child Tax Credit (CTC) Student loan interest deduction Taxable qualified retirement plan distributions   Examples of situations not included in a simple Form 1040 return: Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest and state and local tax deductions Unemployment income reported on a 1099-G Business or 1099-NEC income (often reported by those who are self-employed, gig workers or freelancers) Stock sales (including crypto investments) Income from rental property or property sales Credits, deductions and income reported on other forms or schedules  1095A for marketplace health insurance

If you have not registered, paid or e-filed you can clear and start over in a lower version of the software. CLEAR AND START OVER   https://ttlc.intuit.com/turbotax-support/en-us/help-article/change-service-level/clear-start-turbotax-online/L37BZFuBV_US_en_US?uid=m6b26ost     https://turbotax.intuit.com/personal-taxes/online/free-edition.jsp   https://ttlc.intuit.com/turbotax-support/en-us/help-article/change-service-level/downgrade-lower-priced-version-turbotax-online/L2IDaMvkt_US_en_US?uid=m5ydiw67       How can I see my TurboTax  fees?  https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/review-fees-turbotax-online/L1XnIzgzg_US_en_US?uid=m682vq7k   If your TurboTax fees are higher than expected, you can reduce them by removing add-ons     (BEFORE you e-file) :   Remove Premium Services Remove MAX Defend & Restore Remove a state Remove PLUS Help & Support Remove Pay With Your Refund     Or—-Use this IRS site for other ways to file for free.  There are 8  free software versions available from the IRS Free File site   https://apps.irs.gov/app/freeFile/   Or—if you live in certain states you may be eligible to use the new IRS Direct File     In Filing Season 2025, Direct File will be available in Alaska, Arizona, California, Connecticut, Florida, Idaho, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin, and Wyoming.    https://directfile.irs.gov/   https://home.treasury.gov/news/press-releases/jy2629    

Wait until your original return has been fully processed before you amend, and make sure you have saved a pdf of the original return before you amend. (If you do not save it as a pdf, the amended return will overwrite the original, and the original will be lost forever)     See this TurboTax support FAQ for amending a tax return -   CURRENT YEAR https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-federal-tax-return-current-year/L7eS6o1qh_US_en_US?uid=lfunevhk     Do not expect quick results from amending. It can take four months or more for the IRS to process an amended return.     You can watch for information here: https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1