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Where do I claim a credit against tax liability (26 U.S.C Sect 1341)? Involves Military (DFAS) payment from wrong account and pay back so income is $4500 too high?
Payment and re-payment was all in 2017.
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Where do I claim a credit against tax liability (26 U.S.C Sect 1341)? Involves Military (DFAS) payment from wrong account and pay back so income is $4500 too high?
You can only claim the repayment as credit IRC 1341 Claim of Right using the TurboTax desktop editions in Forms mode on Form 1040 Line 73d. The amount calculated is entered in the Other Credits and Payments Smart Worksheet Line D.
For calculating the credit use Method 2 in IRS Publication 525 Taxable and Nontaxable Income on page 34 - https://www.irs.gov/pub/irs-pdf/p525.pdf#page=34
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