You look at Pub 547

Actual reimbursement more than expected. 

If you later receive a larger reimbursement amount than you expected, after you have claimed a deduction for the loss, you may have to include the extra reimbursement amount in your income for the year you receive it. However, if any part of the original deduction didn’t reduce your tax for the earlier year, don’t include that part of the reimbursement amount in your income. You don’t refigure your tax for the year you claimed the deduction. See Recoveries in Pub. 525 to find out how much extra reimbursement to include in income.

https://www.irs.gov/publications/p547#en_US_2022_publink1000225277