Miscellaneous taxable income-repayment

[jtheis]

I was in an accident in 2020 and was paid taxable disability payments.  I repaid the benefits in 2021.  How do I recover this money on my 2021 return?

[JamesG1]

If you received taxable disability benefits in 2020 and repaid the benefits in 2021, you may qualify for a claim of right repayment.

A claim of right repayment occurs when a taxpayer is required to repay income that they had reported and paid tax on in a previous tax year. The repayment must be of funds that, when received, the taxpayer had a reasonable belief he or she had unrestricted access to.

If you have an amount of $3,000 or less, follow these steps. 

• Go to Federal / Deductions & Credits / Your tax breaks / Other Deductions and Credits / Other Deductible Expenses.
• Click Start / Revisit to the right.
• At the screen Did you have any of these less common expenses? select Repayments of $3,000 or less. 

If you have an amount of $3,000 or more, your repayment will qualify for a credit.  You will need to use TurboTax Desktop and transfer your online data to the desktop program first.  KristinaK here has an point by point description of using TurboTax Desktop to compute a credit for a repayment greater than $3,000.

[jtheis]

Thank You! Is there a way to recover this for the state of Kansas?

[RobertB4444]

When you enter this onto your federal return the reduction in federal income will carry over to the Kansas return.  

Otherwise you will have to amend the original return.