Tax Prep by Deb Posted March 15, 2020 Report Share Posted March 15, 2020 I have a client who received a W2 for third party sick pay. Not a problem, I know how to handle that. But the client was recently awarded Social Security Disability and because they have retro back to 2018 the third party sick pay insurance company wanted to be re-imbursed for which the client wrote them a check. The W2 is reflecting the total paid to her but not reducing it by the amount she paid back. Any suggestions on how I should handle this? It would seem to me at the least they should have deducted it from what they paid her, or sent a corrected W2. Is there some magical way I can handle it? Thanks for any suggestions! Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 15, 2020 Report Share Posted March 15, 2020 Did she repay in 2019 or 2020? 1 Quote Link to comment Share on other sites More sharing options...
grandmabee Posted March 15, 2020 Report Share Posted March 15, 2020 There is a credit she would qualify for the repayment of taxable income. Depends on the amount if credit or Sch A. deduction. Quote Link to comment Share on other sites More sharing options...
Max W Posted March 15, 2020 Report Share Posted March 15, 2020 Maybe an adjustment to income. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted March 16, 2020 Author Report Share Posted March 16, 2020 Was repaid in 2019. Quote Link to comment Share on other sites More sharing options...
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