clay Posted March 8, 2010 Report Share Posted March 8, 2010 Client is being hit with $3000 of AMT. Client is 62, disabled and received sick pay and social security. Client repaid $35,000 of sick pay and received about the same amount in retro payments from SS in 2009 for prior years. She is able to take a Misc Ded for the repayment. I also recalculated her taxes for the prior years SS payments included in 2009 income, but this was not to her advantage. I do not understand why there should be an AMT because in prior years the client paid Federal taxes on the sick pay. Now she has to include the amounts SS is giving her for those same amounts, even though she repaid them to the company who paid her the sick leave. Sure, she gets the misc ded for the amounts repaid, but it does not avoid the AMT because of the income she has to report (SS plus this years sick pay). Seems like she is being taxed twice. Is this just an AMT thing or can she take a credit elsewhere for the repaid sick pay or is there something else to consider? Quote Link to comment Share on other sites More sharing options...
grandmabee Posted March 8, 2010 Report Share Posted March 8, 2010 She can take a credit, sec 1341 goes on line 70 of 1040. Quote Link to comment Share on other sites More sharing options...
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