Claim of right Virginia - which line item?

[bornintheusa1986]

Received a bonus which was subsequently repaid in another tax year. I was successful in getting my Federal refund.

Question: Which line item on form 760 do I show the tax I am seeking to get back specifically from the tax I paid on the bonus?

[LenaH · Accepted solution]

Since you are taking the Claim of Right refundable credit (rather than the itemized deduction), the amount of overpaid tax due must be included on Line 19 of your Form 760. 

You will have to go into Forms mode in TurboTax Desktop and manually edit the amount on Line 19. To do so, go to the Virginia Tax Payments Worksheet. Under Line 13b (Other state tax withholding), enter the amount of the tax. This will flow to Line 19. 

For more information, please see 20-35 Rulings of the Tax Commissioner. 

[bornintheusa1986]

Hi LenaH

When I enter the sum I am seeking into line 13b under the "spouse" column, the form automatically cancels out the credit by applying the same amount as a negative into line 13b under the "taxpayer" column. Resulting in a net $0. I am unable to edit the "taxpayer" column. Why would this be happening? 

Thank you.

[LenaH]

Are you entering the amount on the Tax Payments worksheet? An easy way to open this worksheet is to click on Line 20 (on Form 760). A magnifying glass will appear. Once you click on the magnifying glass, the tax payments worksheet will appear on your screen. 

When I entered an amount in the spouse column on Line 13b, it did not create a negative in the taxpayer column. Furthermore, it successfully flowed to the 760. 

Tax Payments Worksheet:

Form 760:

If you are still getting an error, it would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information. 

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@bornintheusa1986 

[bornintheusa1986]

I amended the form using the "override" function under the edit tab to remove the negative value. 

Thanks again!