Question

Help with Right of Repayment entry as a deduction

Forum|Forum|1 year ago
February 1, 2025
1 reply
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Please explain how to resolve the bug when using Turbo Tax online to enter a Right of Repayment deduction so that it is not reflected as unemployment and is correctly reflected on the appropriate tax forms as a deduction?

I have refunded more than $3K in 2024 for LTD benefits paid out and reported as income in 2023 and 2022. This is over $40K and I want to make sure it is captured correctly. Others reported a software bug for this issue going back to 2021 and were unable to correct it. It appears the issue may still not be resolved. Please advise.

TurboTax Premier Online

D

DianeW777

The claim of right repayment has worked in TurboTax for many years. Please use the steps below to enter your income reduction.

Taking the Income Reduction in TurboTax

Login to your TurboTax account or open your tax return.
Click on Tax Home and then Deductions & Credits.
Locate the section Other Deductions and Credits (you may first need to click on show all tax breaks if working online or I’ll choose what I work on if working in the installed desktop version.)
Click Start (or Revisit) beside Other Deductible Expenses.
A number of questions will appear on the upcoming screens. You are looking for the one that reads Claim of right repayment over $3,000. Click yes when you see this screen. (Be sure to ignore the similar question, repayments of $3,000 or less.)
Enter the amount of the repayment in the box Claim of right repayment over $3,000 and click Continue.

What is a claim of right repayment?

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S

Secord3788Author

I have followed the steps outlined and the deduction entry then shows as a negative amount under "unemployment" income. This is the reported bug. How can the entry under unemployment income be removed while still reflecting the correct deduction?

IsabellaG

When I enter a Claim of Right Repayment as DianeW777 has outlined, I do not see a negative amount under "unemployment" income. Instead, I see an Itemized Deduction on line 16 of Schedule A noted as Claim Repayments.

If you are still seeing an incorrect entry on your return, I would like to take a deeper look at this. However, I need a diagnostic file, which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

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