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

[zmd20]

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

I would like to use credit instead of itemized deduction.

[MinhT1]

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

• Test both methods and choose the one that results in the lowest tax.

Please read this TurboTax Help topic for more information.

[zmd20]

Thank you.