I need to claim a credit for prior year (2019) income that was repaid in 2020 (>$3000). I understand this can be entered into Schedule 3, line 12d as "IRC 1341" claim of right according to Publication 525. However, in the 2020 TurboTax Deluxe software, I am having difficulty finding where/how to enter this information so it populates Schedule 3. Any guidance is greatly appreciated.
You can find this by following these steps:
Thanks JeffreyR77. I see how to do this as an "Other Deductible Expense", but it is then entered as a deduction for 2020 (below Federal standard deduction), and not a credit. As I understand Publication 525, I am allowed to calculate the tax on repayment amount take as credit on Schedule 3, Line 12d (note IRC 1341 in entry line). However, I have not found the way to do this in TurboTax Deluxe. I can view the Schedule 3 form under "Forms", but seems I cannot make changes.
Aha, found it. I needed to open the Schedule 3 under Forms, and then double-click into the Line 12d field, which opens a worksheet to enter the relevant amount and info for Claim of Right IRC 1341 credit for repayments.
I found this discussion while searching for a way to manually input a number into Schedule 3 12d "Other" and it is not for a IRC 1341 credit or credit for U.S. tax paid to Virgin Islands. Is there a way to do this?
Yes.
You can find this by following these steps:
In reply to JeffreyR77
The instructions above, in TurboTax Online ("TTO") work for Method 1 of the IRS
** form lines based on Tax Year 2021 ("TY21") **
Use TurboTax Desktop ("TTD") for Method 2
Open Forms mode and open Schedule 3