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Benefit Plan Advance Repayment

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    Benefit Plan Advance Repayment

    Client was finally awarded Social Security disability in Dec, 2009 and received a lump sum payment for about $40,000. $27,000 was returned to his employer for benefit plan advances from prior years.

    I haven't had one of these since my HRB days many years ago.

    Would I place a negative $27000 on line 21? I'm uneasy with this since the money is included on line 20 for social security benefits. There is only a $500 difference between deducting the $$$ and doing nothing. Clients are living on a very modest income and I want this done right.

    Any help would be greatly appreciated.

    Cheryl

    #2
    Answered my own question

    Found the place to make the adjustment... Line 70 I.R.C. 1341

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