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
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
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