Wage overpayment repayment adjustment/credit W2C

[kazaryanp]

Hello,

I have received a W2C for 2019 for an overpayment ($1800) by my last employer which I had repaid/paid back ($1800 in full) the overpayment in 2020. I've amended the 2019 taxes through turbotax and it is asking me to pay an additional ~$120 in federal taxes. My employer also paid me along with my W2C $112 in social security taxes and $26 in medicare.

My questions are:
1. Since my overpayment and repayment was less than $3,000, do i get back any federal taxes that were withheld as well as state (CA)?
2. If so, where would I file for the deduction or credit and what year? I had repaid the overpayment in 2020, and received the W2C in 2022.

Thank you

[DanielV01 · Accepted solution]

1.  No.  Because of the tax law changes brought about in 2018 through the TCJA, claim of right repayments less than $3000 receive no tax benefit.

2.  Moot because you can't get any tax benefit.

[kazaryanp]

Thank you for the clear answer!