TurboTax

Level 2

Question

Can i attach a short note to explain a repayment credit?

Can i attach a short note to explain a claim of right repayment?

I would like to use credit instead of itemized deduction.

Level 15

You do not need to explain your choice of credit over deduction. You have the right to choose the more beneficial method.

If the repayment is $3,000 or less, it is a miscellaneous itemized deduction and can longer be deducted.

If the repayment exceeds $3,000, you can only report it in the year you actually repaid the claim.

There are a couple of ways to get a tax break by reporting the repayment in the year of repayment:

You'll claim it as a simple deduction from the current year's income. This is the preferred option if you itemize your deductions

Use TurboTax Desktop to figure out the amount of tax you overpaid and take a refundable tax credit

Please read this TurboTax Help topic for more information.

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zmd20Author

Level 2

Thank you.

1 reply