Discussion:Schedule A, line 28 re: repayments

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Discussion Forum Index --> Basic Tax Questions --> Schedule A, line 28 re: repayments


Discussion Forum Index --> Tax Questions --> Schedule A, line 28 re: repayments

Danjames (talk|edits) said:

6 April 2009

On line 28 of schedule A- a client had repayments of benefits in excess of $3000.00

Is there a certain way to describe this on line 28 such as "Repayments of Taxable Benefits"? Also should I provide any supporting documentation to IRS for this Misc. Itemized Deduction ?

Kevinh5 (talk|edits) said:

6 April 2009
Claim of right?

TheTinCook (talk|edits) said:

6 April 2009
I always took the deduction as covering more then just amounts repaid that were included under a claim of right, vis a vis §1341 credit.

As for what to call it, I go with something descriptive like "Repayment of XXXXXXXXXXX inc in income TYzz", so I'm not going to be scratching my head next year while trying to figure out what the heck I did that for.

Tbm103 (talk|edits) said:

14 March 2010
Is there any way to get back the State tax paid on a repayment? My client repaid about $7,600 to his employer after starting to receive Social Security disability. The repayment can be taken care of on the Federal return either by a deduction or credit, but what about all the State tax paid?

Death&Taxes (talk|edits) said:

14 March 2010
Which state?

Tbm103 (talk|edits) said:

14 March 2010
Michigan

Alexander15 (talk|edits) said:

14 March 2010
The Michigan instructions notes this with respect to calculating a credit related to repayments:

To compute your Michigan credit, multiply the amount you repaid in 2009 by the tax rate which was in effect the year you paid the tax. Then add the amount of the credit to the Michigan tax withheld on MI-1040, line 34. Write “Claim of Right/Repayment” next to line 34.

Attach a schedule showing the computation of the credit, proof of the repayment, and pages 1 and 2 of your U.S. Form 1040 and Schedule A if applicable.

See the MI instructions or more information.

Tbm103 (talk|edits) said:

15 April 2010
How are you supposed to add the credit in as tax withheld on a tax program? I can sure figure out how to do it by hand, but my tax program is just not going to let me put it in as withholding, OR to write in "Claim of Right/Repayemnt" next to line 34.

I looked at Turbo Tax too. It won't let me either.

Sometimes these things are almost not worth it.

Okie1tax (talk|edits) said:

16 April 2010
Sometimes the easy way is to do an amended return where you can explain it. Oklahoma is similiar to Michigan, but the only one who knew that at the Tax Commission was in Auditing and he took his notes with him when he retired.

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