Can anyone steer me in the right direction? Client's son received re-enlistment bonus in 2007, but separated early. Not in a combat zone. Repaid the bonus. How is this repayment reported on son's 1040?
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Check page 3-21 of TTB. It gives the instructions. The rules change depending on whether the repayment is less than $3000.00 or more.Originally posted by BHoffman View PostYou have the right to remain silent. Anything you say will be misquoted, then used against you. -
Thanks so much! That will recover the income tax.
What about the FICA?Last edited by BHoffman; 01-11-2009, 01:58 PM.Comment
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You can take the itemized deduction or the tax credit. The same with the state, if any. Expect IRS/STATE follow up as the credit confuses them. I sent everything they needed but the examiners put those papers to the side. I had to re-explain the credit.The credit is the (usually) best way to go.Last edited by BOB W; 01-11-2009, 03:11 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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Thanks. I'm armed with IRC 1341. And have discovered no refund of FICA is allowed.Last edited by BHoffman; 01-11-2009, 02:58 PM.Comment
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Yes,that's what I thought. But, I can't remember where I learned that. But, he will still have credit for the FICA in his SS.Originally posted by BHoffman View PostYou have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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