.If the tax under Method 1 is less, the repayment is deducted, in general, on the same form or schedule on which it was previously included. Refer to IRM 21.6.6.4.12.1, Claim of Right- IRC Section 1341, Repayment of $3,000 or Less.
If it was reported as wages, taxable unemployment compensation, or other non-business ordinary income, it is deducted on Schedule A, Itemized Deductions.
... by reason of the fact that an employee is required to refund to his employer a portion of the wages paid to him during the preceding year by such employer and is entitled to a deduction therefor from his gross income in the year of the refund.
Users browsing this forum: fatherof3, Google [Bot], JoJoCPA, SumwunLost and 80 guests