Repayment of wages after a spouses death back to a pension fund.

[Pella53]

After a spouse dies, and wages are required to be returned to the state, how do you enter this credit on the following years tax return? The state issued a letter of receipt, and no revised W-2.  It is a loss of wages on the distribution shown on the 2023 W-2 total wages earned.  The pension fund letter indicates the letter can be used to take a credit in the following year - 2024.  Where would you show this credit on the federal form?

[AmyC]

Yes, a claim of right can be a deduction or credit depending on the situation. For full details and how to enter, see What is a claim of right repayment?

Keep the letter with your tax records.

The credit for IRC 1341 shows on Schedule 3 line 13b and then shows the total from that section on the 1040 line 31.