Workmans comp

[Acownt4it]

Another new thing this late in the season and it is making me crazy(er).

TP received a check for workmans comp. This check is 75% of actual pay. TP hands the w.c. check over to employer because they will pay 100% of wages for w.c. Employer withholds taxes. W-2 wages includes the w.c. pay.
TP says this money should not have been taxed. I agree, but I do not know how to take this amount off of TP's return.
Any one have any suggestions?

[Brian EA]

Another new thing this late in the season and it is making me crazy(er).

TP received a check for workmans comp. This check is 75% of actual pay. TP hands the w.c. check over to employer because they will pay 100% of wages for w.c. Employer withholds taxes. W-2 wages includes the w.c. pay.
TP says this money should not have been taxed. I agree, but I do not know how to take this amount off of TP's return.
Any one have any suggestions?

What really happens here is that the employer pays for workman comp and is taxed as regular earnings. Employee gets 100 % earnings wheras WC only pays 75%.

There is no way you can take the additional amt off.. I would want to think this is better off for the employee.