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New Member
posted Jun 1, 2019 10:58:38 AM

I have a form 705 from DFAS and it is greater than $3000. Where do I enter in Turbo Tax or do I still just use the Misc deduction area?

Since it is greater than 3000 how do you compute a credit against your tax liability?

0 1 2050
1 Replies
Level 15
Jun 1, 2019 10:58:39 AM

You can only claim the repayment as credit IRC 1341 Claim of Right using the TurboTax desktop editions in Forms mode on Form 1040 Line 73d.  The amount calculated is entered in the Other Credits and Payments Smart Worksheet Line D.

For calculating the credit use Method 2 in IRS Publication 525 Taxable and Nontaxable Income on page 34 - https://www.irs.gov/pub/irs-pdf/p525.pdf#page=34