Can I claim the claim of right repayment credit?

The claim of right repayment credit can be claimed if you meet the following requirements:

• You repaid more than $3,000 in 2025
• You aren't claiming a deduction for the repayment

In most cases, you can claim the credit only if the repayment qualifies as an expense or loss incurred in your trade or business or in a for-profit transaction.

See Publication 525  for more requirements and information.