Schedule 3, line 13d: where to enter online?

[natalie_k]

Schedule 3, line 13d: in the online software how do I enter an amount that I need to appear on line 13d in Schedule 3 (and then it should appear on form 1040, line 18d)?

[VictoriaD75]

It depends. What are you trying to report on line 13d of Schedule 3? This line is not directly associated with a specific tax form. Sometimes, an additional tax will appear on this line as a result of reporting in box 12 of your W-2. Can you elaborate on what you are trying to report?

[natalie_k]

I need to enter the claim of right credit for earliet year repayment. I found the solution by switching to the desktop version and manually entering the credit in the form mode.

However , I am failing now to enter the claim of right credit into NC D-400. Their instructions say to enter it on line 21d S Corporation,  but Turbotax doesn't allow to manually enter into this field.

Could you please help me with this entry? I am using the desktop version now of the deluxe software. Thank you very much in advance!

@VictoriaD75 

[Pbruno94]

Hi - I was also trying to enter a credit into Schedule 3, line 13d as I repaid a bonus in 2022 that was received in 2021. I have found the guidance on calculating the credit but I was unable to find through Turbotax online where I can enter this specific credit.

Can you please point me in the right direction?

Thank you in advance!

@VictoriaD75 

[HopeS]

It depends on if you are using Turbotax online or Desktop.

While you still have to repay the money, there are a couple of ways you can get a tax break by reporting the repayment on your current year's tax return:

1. Take a simple deduction of the repaid income from the current year’s income (this is the easiest option for taxpayers who itemize their deductions)
2. Use TurboTax CD/Download to calculate the amount of tax you overpaid and take a refundable credit

Taking the simple deduction, please follow the steps below:

1. Sign in to your account and open (or continue) your tax return
2. Select Federal, then Deductions and Credits
3. Scroll down to Other Deductions and Credits (you may need to select See All Tax Breaks and/or Show More)
4. Scroll down to Other Deductible Expenses and select Start (or Revisit)
5. Answer the questions until you get to the Did you have any of these other expenses? screen.
6. Select Yes. See the screenshot below:
7. On the Tell us about your other expenses screen, enter the amount of the repayment in the Claim of right repayment over $3,000 box and select Continue

However, if you are using a Turbotax desktop follow the instructions below then click on "Taking the credit in TurboTax CD/Download"

Claim of Right Repayment

See the screenshot below:

@Pbruno94 

[Pbruno94]

Right, and I've followed the steps for the simple deduction, however I will be taking the standard deduction and I get no benefit from the simple deduction. Per publication 525 from the IRS I have calculated the difference in my tax liability with and without the bonus for 2021 and should be able to claim the difference as a credit on line 13d of schedule 3 of this year's return. I will be using the online Turbotax so is there a way to get to this line through the online version?

Thank you,

@HopeS 

[DianeW777]

No.  This can be completed only in TurboTax Desktop version.  Below are the steps and how to change from TurboTax Online if you choose to use the credit.

• How do I switch from TurboTax Online to TurboTax CD/Download?

Taking the Credit in TurboTax

There are two components to taking the credit in TurboTax. The first part entails determining the amount of the tax that was overpaid in the year the income was received. This requires using the TurboTax Desktop product (or another method) to determine what the tax liability would have been without the income.  (You have already completed this part per your question.)

1. The credit can only be applied using the TurboTax Desktop product installed on a computer, in the Forms mode.
2. Switch to Forms mode by clicking on Forms icon in the program.
3. In the list of forms on the left click on 1040/1040RSR Wks above the Form 1040 itself.
4. Scroll down to Other Credits and Payments Smart Worksheet (near the bottom) and enter the amount that you have computed on Line D Claim of Right, IRC 1341 credit for repayments of prior year income.
5.  Click on the Step-by-Step or Easy Step icon in the upper right corner to return to the interview mode and finish working on your tax return.

See image below for assistance.  @Pbruno94

[bskc]

I added the claim of repayment as credit for federal following your instructions. I am not getting an option to add claim of repayment as credit for NC state. North Carolina specifies that this credit be claimed "on the same line as S corporation payments" (https://www.ncdor.gov/taxes-forms/individual-income-tax/repay[product key removed]-income). 

Following NC's guidelines, we have to enter the credit amount on form D-400 line 21d (S corporation). I am using desktop TT premier version for MAC operating system (os). I am not able to edit the D-400 form at line 21d to enter the credit. Is there alternative way to add this?

[drjay3500]

Wife had to re-pay $297 to employer for being over paid.

[ErnieS0]

Was the repayment for 2022 wages. Any repayment made in 2022 for being overpaid in 2022 should be reported on your wife’s W-2. If it’s not there, ask your employer about a corrected form.

If your wife repaid wages received in 2021 in 2022, the amount must be $3,000 or more to be deductible or eligible for a tax credit.

See Repayments.

@drjay3500