Hannah is a California taxpayer. She is retired and receives a pension payment of $1,000 during 2020, and then in 2021 receives a letter from the pension administrator informing her that an internal audit of the pension computer system revealed that the administrator made a mistake and overpaid the $1,000 benefit in 2020. As such, they now want Hannah to repay (the $1,000 overpayment) by writing a check back to the pension plan in 2021.Explainn Under Section 1341, Claim of Right, Hannah is entitled to claim a deduction for what amount of the overpayment on her California income tax return for tax year 2021?

Answer rating: 100% (QA)

Under Section 1341 of the Internal Revenue Code the Claim of Right doctrine may allow Hannah to clai... View the full answer