Hello,
Good work on taking the initiative to amend your return. However, let's back up a few steps and review your options as you would not need to amend your prior year return.
It appears you've found the correct tax code section for repayments found under IRC 1341 which is discussed in publication 525 here. If you read this section, it's clear that you can tax a credit or deduction in the year of repayment. It does not suggest that you should amend. The reason for this is that you did indeed receive the income in the year it was overpaid, in this case 2022, and you did repay it in a different year, in this case I assume 2024. You have a third option of deducting the income on the form where it was originally included in 2022. This would apply to income other than wages so self-employment Sch C income or rental Sch E income etc. If you are repaying wages, you will need to consider the deduction or credit option only.
If the amount of repayment is greater than $3000, you can calculate the tax impact of removing the income in 2022, as if you were amending, and the difference in tax can be taken as a tax credit on your current year return in 2024. If the amount is less than $3,000, I'm afraid there is no refund you can claim because the deduction must be taken as a 2% miscellaneous itemized deduction and the passage of TCJA in 2018 eliminated this category of deduction for employees.
As a side note, to answer your question in general about how amendments work, the 1040X will reflect the change in tax from the original 2022 return and the amended 2022 return which is attached to the 1040X ONLY. The 1040X does indeed include in it's calculation any original refund or tax paid. Since you already paid (or received a refund) of that amount, you get back any overpayment per the calculation on the 1040X. Amendments are generally handled by paper although TurboTax is working on adding the efile option for even these returns. You can included your routing and account number on the new 1040.
Hope this helps.
