If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it; OR if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it.
Please refer to IRS Publication 525 for additional information.
To enter the credit into the TaxAct program, follow the steps below.
Online
Dashboard
From within your TaxAct return, click Resources.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Under My Return, click Federal Search.
Click the Miscellaneous Topicsdrop-down, then click Credit for repayment (I.R.C. 1341).
Complete the rest of the interview process.
Classic
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Miscellaneous Topicsdrop-down, then click Credit for repayment (I.R.C. 1341).
Complete the rest of the interview process.
Desktop
From within your TaxAct return, click Federal.
Click the Miscellaneous Topicsdrop-down, then click Credit for repayment (I.R.C. 1341).