Overpayment of third party sick pay

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  • tsuewalker
    Member
    • Feb 2013
    • 88

    #1

    Overpayment of third party sick pay

    Client received third party sick pay in November and December, 2014. She received a letter in January, 2015 that she had been overpaid approximately $500 and had to send them a check. She then got a letter saying something about IRS doesn't permit W-2's with a negative amount and she would need to apply this credit to the employee's W-2 wages earned in 2015 and gives numbers showing taxable amounts for federal income tax and withholding. I'm obviously working on a 2015 return. How do I handle this?

    Thanks for your help in advance.

    Tanya
  • taxea
    Senior Member
    • Nov 2005
    • 4292

    #2
    The employer needs to issue a corrected W2, not give the figures for the W2 in a letter.
    Believe nothing you have not personally researched and verified.

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