How do I claim a Claim of Right CREDIT (not as a deductible expense) on TurboTax? I see the option in "Other Deductible Expenses" but don't see it under "Other Credits"

Level 15

Jun 3, 2020 3:23:44 PM

TT does not do the credit calculation. You have to do that manually. You enter the credit in the forms mode (the forms mode is not available in the on-line versions of TurboTax [TT]).

To switch from on-line to desktop:
Even before you pay for the online version you can switch to the desktop version and you won't have to re-enter your information. To continue in the desktop version see this
https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-switch-from-turbotax-online-to-the-turbotax-software/00/26129

All entries that seem like you should be able to enter on Form 1040 or Schedules 1 through 3 have to be entered on TurboTax's 1040 Worksheet. Scroll way down to Other Credits and Payments Smart Worksheet. Select item D, claim of right under IRC 1341 for repayments. It ends up on line 13 of schedule 3.

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Repayments. This situation is described in IRS Publication 525. If the amount is more than $3000, you can take a itemized deduction, on line 16 of schedule A (not subject to the old 2% of AGI rule) or you can take a credit. The credit is computed by re-figuring the tax from the previous year as if the income had not been received. Then the difference in tax is claimed as a credit on the current year's return. TT does not do the credit calculation or compare it to the alternate deduction. You have to do that manually. You enter the credit in the forms mode (the forms mode is not available in the on-line versions of TurboTax [TT]). All entries that seem like you should be able to enter on Form 1040 or Schedules 1 through 3 have to be entered on TurboTax's 1040 Worksheet. Scroll way down to Other Credits and Payments Smart Worksheet. Select item D, claim of right under IRC 1341 for repayments. It ends up on line 13 of schedule 3.

So, the taxpayer has the option of either claiming the credit or deducting the repayment as an other itemized deduction, whichever provides the greater benefit. But, you cannot file an amended prior year return.

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How do I claim a Claim of Right CREDIT (not as a deductible expense) on TurboTax? I see the option in "Other Deductible Expenses" but don't see it under "Other Credits"