Claim of Right on MI1040

I am trying to enter a claim of right for a signing bonus I had to repay from a previous employer. I used Method 2 of IRC 1341 for my federal return and entered it accordingly as a tax credit. I am trying to figure out how to add this to a Michigan 1040 in TurboTax. The MI1040 instructions say to just add it to line 29 (Michigan tax withheld) with a note it is Claim of right, but this is a non-editable column in the TurboTax form. I could put it on Schedule W, but then it throws errors since it is set up for W-2 or 1099-R income. Thanks for any help

799

Expert Alumni

Feb 23, 2021 11:23:10 AM

[Edited 2/23/2021 4:40 PT]

Enter your Claim of Right credit as Withholding not already entered on a W-2 or 1099 in Deductions & Credits. The amount will transfer to your Minnesota return.

Type tax payments in Search in the upper right
Click Jump to tax payments
Scroll down to Other Income Taxes Paid in 2020
Start Withholding not already entered on a W-2 or 1099
In State Withholdings enter Minnesota and the amount of your credit

You will not be able to e-file your Michigan return with the credit. Once you print out Form M1, write “M.S. 290.07, subd. 4” on the form.

Related Resource:

Repaying Taxed Income Deduction

Returning Member

Feb 23, 2021 11:40:48 AM

OK, thank you. This is actually for Michigan, but I plan to follow the same directions and print it out and write Claim of Right/Repayment. Thank you for the information

New Member

Mar 12, 2022 7:26:11 AM

Hello,

Did this work for you ? I have the same situation and trying to figure out the specifics for Michigan

Thanks in advance,

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Claim of Right on MI1040