Question

Repayment

Forum|Forum|5 years ago
July 7, 2020
1 reply
0 views

In 2018 I was on Long Term Disability. Under the terms of my employer's plan, the payment made by the insurer was offset by social security payments. When I became eligible for social security I collected the social security check but the insurer did not deduct the amount from my LTD payment and so overpaid me for a month's worth of my SS payment. I paid the insurer back for the one month's payment, but apparently also paid taxes on the amount of my repayment in my 2018 taxes. The insurer sent me a letter telling me that I can recover the overpaid taxes.The amount, however, of the repayment was just under $3000, and so doesn't meet the threshold and due to the tax law changes I no longer make itemized deductions. The insurer's letter states that I can recompute my tax for the year 2018 and claim the overpaid tax as a repayment on my 2019 return. Can I do that in TurboTax?

K

KristinaK

Employee

You can do it in TurboTax Desktop version. However, if the repayment amount was less than $3000, you cannot claim Sec. 1341 credit. It applies only to the amounts that exceed $3000.

Unfortunately, in both situations - whether claiming a deduction or credit - you are out of luck after the tax law change.

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T

tjilardiAuthor

That is, in fact, the wall that I have been running into. Would it be possible for me to file an amended return for 2018 on the theory that the W-2 was issued to me was incorrect?