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Level 2
posted Mar 30, 2022 2:30:35 PM

Pension overpayment Repaid

We were overpaid just under 8,000 last year from a military pension (DFAS).

My wife repaid the overpayment and got a letter from DFAS saying it was paid back.

But they still gave us the 1099R showing the full amount received and taxable.

Their nice letter just says "you may be able to deduct the amount repaid as a miscellaneous deduction or use the amount to compute a credit against your tax liability"

Any help/ideas?

We're using TurboTax Deluxe.

Thanx in advance.

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1 Best answer
Employee Tax Expert
Mar 30, 2022 2:41:30 PM

This is a claim of right repayment. You can only report it in the year you actually repaid the claim.

 

If your repayment is less than $3,000, you'll claim it as a Miscellaneous itemized deduction in Schedule A.

 

If the repayment is more than $3,000, please read this TurboTax Help topic on how to make the claim.

1 Replies
Employee Tax Expert
Mar 30, 2022 2:41:30 PM

This is a claim of right repayment. You can only report it in the year you actually repaid the claim.

 

If your repayment is less than $3,000, you'll claim it as a Miscellaneous itemized deduction in Schedule A.

 

If the repayment is more than $3,000, please read this TurboTax Help topic on how to make the claim.