How do I add a credit to 1040 on TTaxOnline? IRS tax code tells me to: "enter on the credit line in the payment section of Form 1040, with annotation "IRC Section 1341"

[rwarshaw610]

I'm looking to do a "Claim of Right - IRC Section 1341, Repayment of More Than $3,000" for a bonus that I received in 2018 and paid back in 2020. I used my 2018 tax return to calculate the credit I should receive (by subtracting the bonus amount and recalculating the tax, then finding the difference), but I don't know how to enter this credit value on TurboTax on the Form 1040.

Also, I received a W2-C for this situation -- is there a way to submit it?

Thank you so much for any help!

[DavidD66]

This tax credit can only be entered directly on Form 1040, so you have to use TurboTax Desktop software, as the online editions do not have the capability to enter tax data directly on a form, schedule or worksheet.  Using the desktop editions in Forms mode to access Form 1040, Schedule 3 Line 12 and enter the tax credit in the Other Credits and Payments Smart Worksheet line D.

For what year did you receive a Form W2-C?

[rwarshaw610]

Thank you so much! And to your question, the Form W2-C was for 2018; do I need to submit the W2-C or any tax documents from 2018? 

[JohnB5677]

If you have a W-2C that correctly reflects the adjustment to the bonus repayment, I suggest that you simply file an amended 2018 tax return. 

Provided you filed with TurboTax in 2018, you will be able to file the amended return with us as @DavidD66 outlined.

You have until April 15th 2022 to file a 2018 amended tax return.

To amend a return 

Some quick ground rules:

1. Be sure the original return was filed and accepted.
2. Save the original return before you start the amendment
3. Change the name of the amended return.
4. DO NOT go back into the return or change anything before you start the amendment process.
5. Gather everything you need before you start.
6. Complete the entire amendment process before you log out.

You can correct a return that you've already filed and had accepted.  Select the year that applies and use this guide to proceed.

Select your tax year for amending instructions:

• 2020
• 2019
• 2018

For additional information please refer to  How to Amend