Repayment over $3,000. If the amount you repaid was more than $3,000, you can deduct the repayment. However, you can choose instead to take a tax credit for the year of repayment if you included the income under a claim of right. This means that at the time you included the income, it appeared that you had an unrestricted right to it. If you qualify for this choice, figure your tax under both methods and compare the results. Use the method (deduction or credit) that results in less tax.
See Repayments here:
To report the repayment of taxable income as an itemized deduction on Schedule A -
Or enter other deductions in the Search box located in the upper right of the program screen. Click on Jump to other deductions
If the repayment amount was $3,000 or less -
If the repayment amount was over $3,000 -
Enter the amount repaid in the box labeled Claim of right repayment over $3,000. Continue with this section until it completes.