Repayment

Repayment means:
an amount included in income in an earlier year that may be deducted when repaid. If repayment is $3,000 or less, it should be deducted in the year of repayment on the same form or schedule on which it was previously reported. If the amount repaid is over $3,000, the repayment can be deducted or a tax credit can be applied against the tax for the current year.