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Adjustment of prior year income

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    Adjustment of prior year income

    Client received disability payments from previous employer in 2007 and 2008 reported on a W-2 as third party sick pay.

    Social Security determined client was disabled as of Oct 2007. Client received benefits in 2008 for all of 2008 and the three months in 2007 ($1,722. for 2007). I understand how to handle the reporting/taxability of the SS benefits.

    However, client has to repay third party payer for the SS benefits received. They deducted the correct amount for 2008 and adjusted the 2008 W-2. But, client had to repay $2583 in 2008 for income received on the 2007 W-2.

    Where can this be deducted?

    Thanks for your help.
    David

    #2
    Some Info

    Here are some links on the Board for some prior posts on the same subject, so maybe they will assist you.

    Primary Forum for posting questions regarding tax issues. Message Board participants can then respond to your questions. You can also respond to questions posted by others. Please use the Contact Us link above for customer support questions.

    Primary Forum for posting questions regarding tax issues. Message Board participants can then respond to your questions. You can also respond to questions posted by others. Please use the Contact Us link above for customer support questions.


    Sandy

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