Solved: Entering a Claim of Right Repayment over $3,000 co...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
mmmed
Level 2

Entering a Claim of Right Repayment over $3,000 continues to automatically generate an "Unempolyment and paid family leave" 1099 under income and expenses. Software Bug?

This bug needs to be fixed so I can file
1 Best answer

Accepted Solutions
Opus 17
Level 15

Entering a Claim of Right Repayment over $3,000 continues to automatically generate an "Unempolyment and paid family leave" 1099 under income and expenses. Software Bug?

Sorry, the previous answer is incorrect. The claim of right repayment is a special itemized deduction not subject to the 2% rule, and it was not eliminated by the tax reform act of 2018 even though most other miscellaneous deductions were eliminated.

 

You do still have the option of taking the section 1341 credit if it gives you a better recovery than the deduction, but the deduction is not eliminated.

 

This bug has been reported. We don’t know when it will be fixed. However, the IRS will not open e-filing until January 27 at the earliest, so even if TurboTax would allow you to file earlier, your return will only go into cold storage.  There are a lot of tax law changes and a lot of forms that aren’t ready to file yet. Don’t be in a rush this year.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

3 Replies
Mike9241
Level 6

Entering a Claim of Right Repayment over $3,000 continues to automatically generate an "Unempolyment and paid family leave" 1099 under income and expenses. Software Bug?

you are no longer allowed to deduct a claim of right repayment.  since it's over $3,000 you must go back to the year you got the money. then compute your taxes assuming you never got it. the decrease in tax is claimed as a credit on schedule 3 line 13.  label it as "claim of right IRC 1341"

mmmed
Level 2

Entering a Claim of Right Repayment over $3,000 continues to automatically generate an "Unempolyment and paid family leave" 1099 under income and expenses. Software Bug?

Thank you for the update.

How can I fill out the schedule 3 in turbotax online? I am using the TT self employed product.

 

Best,

M

Opus 17
Level 15

Entering a Claim of Right Repayment over $3,000 continues to automatically generate an "Unempolyment and paid family leave" 1099 under income and expenses. Software Bug?

Sorry, the previous answer is incorrect. The claim of right repayment is a special itemized deduction not subject to the 2% rule, and it was not eliminated by the tax reform act of 2018 even though most other miscellaneous deductions were eliminated.

 

You do still have the option of taking the section 1341 credit if it gives you a better recovery than the deduction, but the deduction is not eliminated.

 

This bug has been reported. We don’t know when it will be fixed. However, the IRS will not open e-filing until January 27 at the earliest, so even if TurboTax would allow you to file earlier, your return will only go into cold storage.  There are a lot of tax law changes and a lot of forms that aren’t ready to file yet. Don’t be in a rush this year.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

Dynamic AdsDynamic Ads
v
Privacy Settings