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:
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: