I was overpaid my salary in 2015. I paid back the difference in 2016 ($319). I know I could deduct this amount as a misc itemized deduction on Schedule A. However, I do not itemize my deductions. Is there still a way to get credit for this over-payment?
Yes, but not with the Turbotax free online edition.
. The credit is computed by refiguring the tax return from the previous year as if the income had not been received. Then the difference in tax is claimed as a credit on the current year's return. In the forms mode (the forms mode is not available in the on-line versions of TurboTax[TT]), you can use the line 73 smart work sheet to enter the credit amount on line 73; select item D, claim of right under IRC 1341 for repayments. TT will enter "I.R.C.1341" on the line next to box d on line 73 of form 1040. TT does not do the calculation or compare it to the alternate deduction.
So, the taxpayer has the option of either claiming the credit or deducting the repayment as a miscellaneous itemized deduction, whichever provides the greater benefit. But, you cannot file an amended prior year return.
https://www.irs.gov/publications/p17/ch12.html#en_US_2016_publink1000172015
Yes, but not with the Turbotax free online edition.
. The credit is computed by refiguring the tax return from the previous year as if the income had not been received. Then the difference in tax is claimed as a credit on the current year's return. In the forms mode (the forms mode is not available in the on-line versions of TurboTax[TT]), you can use the line 73 smart work sheet to enter the credit amount on line 73; select item D, claim of right under IRC 1341 for repayments. TT will enter "I.R.C.1341" on the line next to box d on line 73 of form 1040. TT does not do the calculation or compare it to the alternate deduction.
So, the taxpayer has the option of either claiming the credit or deducting the repayment as a miscellaneous itemized deduction, whichever provides the greater benefit. But, you cannot file an amended prior year return.
https://www.irs.gov/publications/p17/ch12.html#en_US_2016_publink1000172015