Documentation Requirements: Federal and Virginia "Claim of Right"

[brandonpearman]

In 2020 I received a sign on bonus.

In 2021 I repaid all of that sign on bonus.  

In 2022 (This year) I am submitting my corrected taxes for the repayment of the sign on bonus.  This correction only shows lower taxes paid by me.  There was no adjustment to wages earned.

This year I am submitting a claim of right for federal and state.

Based on other TurboTax forum answers, I was able to find out how to do the federal claim of right.

Question #1 Are there any additional documentation requirements for the federal claim of right?  Can I still file online for federal?

I live in Virginia and Virginia has claim of right.  Based on the article below, I understand how to fill out my taxes in TurboTax for the VA claim of right.

Article for how to do VA claim of right:  Solved: Claim of Right Repayment - Virginia State Tax (intuit.com)

Question #2  Based on the above article, I cannot e-File my VA taxes and additional documentation is required.  What does this additional documentation need to look like/include?  Is there no standard format?  If I simply show the changed amounts from my 2020 W-2 and say here are the numbers from the submitted taxes and here are the numbers TurboTax provided me with after the appropriate changes were made, can I provide that as the "Calculation for Federal and Calculation for State".

I didn't see any standard forms or standard ways to provide the extra documentation that is required for VA and may be required for Federal.  Will you please help me with the answers to my 2 questions?

[Cynthiad66]

Please find answers to your questions about VA claimof right.  A claim of right repayment occurs when a taxpayer is required to repay income that they had reported and paid tax on in a previous tax year in an amount greater than $3,000. The repayment must be of funds that, when received, the taxpayer had a reasonable belief he or she had unrestricted access to.

Question 1 - there are no additional documents required for the federal and you can e-file that return.

Question 2 - For Virginia - the state of Virginia requires you to attach the computation of how the Claim of Right credit was calculated for both federal and state, so you would have to mail the return with the worksheets.

Note: The amount of tax benefit derived from the repayment must be included on the line of the Virginia return designated for Virginia income tax withheld, which is Line 26.  To enter this in Turbo Tax, you would have to enter as a state estimated payment in the Federal Deductions and Credits section.  See The" claim of right doctrine" is directly tied to IRC treatment

Per MaryK1101