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franco-valoppi
New Member

Question about: Claim of right repayment over $3,000

I wasn't able to understand the deduction mentioned in the Help as "Claim of right repayment over $3,000".
It says something as if I paid more than $3000 last year, but I paid back this year, blah... Wasn't really able to understand if this applies to me.

Could you explain a bit better the concept behind it, so I understand if this applies to me or not?

Thanks!
7 Replies
dave121
New Member

Question about: Claim of right repayment over $3,000

I have this situation -- I had to repay in 2016 an overpayment that my employer made in 2015. I save more money by claiming the credit than by claiming the deduction.

Does anyone know how I can apply a credit to my Maryland state return? I can't find anyplace to enter it in TurboTax. Do I need to file an amended 2015 Maryland return?
Saddie5
New Member

Question about: Claim of right repayment over $3,000

I rent my house for a total of 15,600.00. It all went toward the mortage. Can I claim as repayment?
Opus 17
Level 15

Question about: Claim of right repayment over $3,000

If you received income in a previous year that you were believed you were legitimately entitled to, and then had to pay it back in 2015, there are two methods to deduct that from your income.  If the amount was less than $3000, it is a misc deduction subject to the 2% rule, so many people will not benefit.

If the amount of repayment is more than $3000 you have two methods to deal with the repayment.  One is to deduct the income as a misc itemized deduction NOT subject to the 2% rule.  The other method is to figure out how much less income tax you would have owed in the year you received the income, and take that amount as a direct tax credit instead of a deduction.  If you earned over $50,000 and have more than $6200 (single) or $12,400 (joint) of itemized deduction, then both methods will have the same result.  But if you don't normally itemize your deductions, or if your income this year is much less than the year you got the income, then the direct credit may save you more money.  This is the claim of right credit.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
ksmtexas
New Member

Question about: Claim of right repayment over $3,000

One caveat to Opus17, be mindful of changes in tax brackets. If you are in a lower bracket this year due to tax regulations then taking the credit will be more helpful than deducting income in mics itemized deduction.
mmmed
Level 2

Question about: Claim of right repayment over $3,000

When I fill in the claim of right deduction over 3,000 in the "deductions and credits" section, turbotax online is populating an : Unemployment and paid family leave (1099-G) for the same amount in the income and expenses section. Is this a bug in the software?

 

Best,

MM

Irene2805
Expert Alumni

Question about: Claim of right repayment over $3,000

This issue will be resolved when the forms are finalized.  For current information on forms availability, please click on this link:  Federal forms availability

taxpayer1040
Returning Member

Question about: Claim of right repayment over $3,000

This issue still has not been fixed.  When will it be fixed?

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