In 2016 my husband repaid wages to his former employer after they overpaid him after he left, but they won't fix w-2. What wages do we report on taxes?

Forum|Forum|7 years ago
June 4, 2019
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My husband's former employer overpaid him by mistake and notified him after he left. Told him as long as they receive the net amount back (under $3000) by end of 2016 that it won't have any tax implications. We sent them as monthly payment from August until December 2016, but they didn't log the December payment in until 1/3/17 so they are claiming they don't have to adjust or fix his w-2 at all. We sent the December payment on 12/22/16 so they should have had it in plenty of time to process for the end of the year. So, how do we report his wages from this employer? Is there somewhere that we can take the repaid amount as a credit or deduction so that we're not paying taxes on wages that we didn't actually receive?

TurboTax Home & Biz Windows

Best answer by Hal_Al

There's no easy or correct way to do this. I would take a deduction on line 21 (of form 1040).

In TurboTax (TT), enter at:
- Federal Taxes tab (personal in Home & business)
- Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other reportable income - Enter the number with a minus sign (-) in front. Briefly explain at description. I would say Income included in W-2 but repaid in 2016.

Hal_AlAnswer

Employee

There's no easy or correct way to do this. I would take a deduction on line 21 (of form 1040).

In TurboTax (TT), enter at:
- Federal Taxes tab (personal in Home & business)
- Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other reportable income - Enter the number with a minus sign (-) in front. Briefly explain at description. I would say Income included in W-2 but repaid in 2016.