How should handle when files taxes

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Problem 1: Jaime received a payment from the military that he included in his income in 2016. In 2018, the military sent Jaime a notice requesting $4,000 back due to an overpayment. Jaime paid the money back in 2018. How should he handle this when he files his 2018 taxes?

a) Jaime can deduct the repayment if he itemizes.

b) Jaime can deduct the repayment whether he itemizes or takes the standard deduction.

c) Jaime must amend his 2016 return with the correct amount of income.

d) Jaime has already paid taxes, so no correction is needed in 2018.

Reference no: EM132690119

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