If an over-payment was established as debt and reported as taxable income, then i settled my debt, how do i remove the paid debt from my taxable income?

mello1 · ‎February 9, 2022

I recieved DFAS FORM 705, stating it may be used to assist in reducing my tax liability for 2021.

MaryK4 · ‎February 9, 2022

If you paid taxes on income that you had to pay back in a later year, you can claim a deduction or credit to offset the tax you had to pay on it in the earlier year. Generally, if the amount is more than $3000, it is known as a Claim of Right- for details and instructions on how to enter, see What is a claim of right repayment?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Expert does your taxes

Do it yourself

Resources

Support

If an over-payment was established as debt and reported as taxable income, then i settled my debt, how do i remove the paid debt from my taxable income?