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Level 2
posted Feb 18, 2021 10:43:11 AM

Schedule 3, Line 12d in TurboTax Deluxe

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.

0 6 1947
6 Replies
Expert Alumni
Feb 18, 2021 11:14:05 AM

You can find this by following these steps:

  1. Click on Federal Taxes and then Deductions & Credits.
  2. Locate the section Other Deductions and Credits 
  3. Click Start (or Revisit) beside Other Deductible Expenses.
  4. A number of questions will appear on the upcoming screens. You are looking for the one that reads Claim of right repayment over $3,000. Click yes when you see this screen. (Be sure to ignore the similar question, repayments of $3,000 or less.)
  5. Enter the amount of the repayment in the box Claim of right repayment over $3,000 and click Continue.

Level 2
Feb 18, 2021 11:34:19 AM

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.

Level 2
Feb 18, 2021 12:03:04 PM

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.

New Member
May 5, 2021 8:12:03 PM

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?

Expert Alumni
May 6, 2021 6:08:05 AM

Yes.  

You can find this by following these steps:

  1. Click on Federal Taxes and then Deductions & Credits.
  2. Locate the section Other Deductions and Credits 
  3. Click Start (or Revisit) beside Other Deductible Expenses.
  4. A number of questions will appear on the upcoming screens.
  5. Choose what fits or enter as other

Level 1
Apr 9, 2022 6:20:13 PM

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

  • click on line 13d and click on the magnifying glass
  • this brings you to the 1040/1040SR Wks
  • click on line E in Other Credits and Payments Smart Worksheet
    • enter the calculated tax related to prior years by clicking on the + sign
    • enter each tax year separately - if your taxable income is zero, it would generally be the tax line below taxable income 100% (in tax history 5 year worksheet if you have history)
    • this will populate line 13d in the 1040/1040SR Wks ("worksheet")
    • this will also populate Schedule 3, line 13d
    • this will also populate Form 1040 line 31 (Tax Year 2021) to provide the CREDIT (method 2)