schirallicpa Posted July 10, 2008 Report Share Posted July 10, 2008 I have a client that had to pay back a pension payment from 2004. They were never issued a corrected 1099. I amended the 2004 return with statement reflecting the situation. IRS responds that since we do not have a corrected Form 1099 we will need to claim this repayment as a Section 1341 request and deduct the payment or tax credit in the year of repayment, not in the year it was received. Ok - found a few articles on the internt. No problem. But, how? Gee, I don't see a line item for this one. Does this have to go on a particular form? I don't really find anything. Form 843 doesn't work. Or do I just shove it on a payment line? Do I file a 1045? It seems like I should file a 1040x. Any advise out there today....or tomorrow... Thanks Quote Link to comment Share on other sites More sharing options...
jainen Posted July 10, 2008 Report Share Posted July 10, 2008 >>It seems like I should file a 1040x<< No, it goes on the current year as either a deduction or a credit. See "repayments" on page 33 of Pub 525 http://www.irs.gov/pub/irs-pdf/p525.pdf Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted July 10, 2008 Report Share Posted July 10, 2008 Well, if it is taken on the A, it goes on Line 28, line 7 of that worksheet. That is for Claim of Right deductions under $3000. If it is over $3000, then Pub 525 page 33, shows you how to calculate it and report it. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted July 16, 2008 Author Report Share Posted July 16, 2008 THANK YOU!! Quote Link to comment Share on other sites More sharing options...
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