1341 Sick Pay Repayment

Technical topics regarding tax preparation.
#1
Posts:
148
Joined:
20-May-2014 3:08pm
Location:
Canton, GA
Taxpayer self prepared their 2014-2017 individual income tax returns. In 2014-2016, they received LTD/STD from an insurance company. The payments were 100% taxable and reported as such. In 2017, taxpayer received a lump sum from Social Security and repaid most of the 2014-2016 sick pay. Taxpayer handled this by amending their 2014-2016 returns instead of taking a 1341 credit or deduction on their 2017 return. I don't believe that is the proper treatment.

I don't want to perform or bill client for unnecessary work. As such, I'm looking for confirmation we should re-amend 2014-2016 to put them back to how they were originally filed, then amend 2017 to take either a 1341 deduction on Schedule A or credit on 1040 page 2.

Thanks,
 

Return to Taxation



Who is online

Users browsing this forum: alwayslost, ChrisGCPA, CPA1, golfinz, Google [Bot], Jeff-Ohio, JoJoCPA, kyle242gt, lckent, rbynaker, rkrcpa, TaxDude, TAXMASTER, taxp2345, taxtothebest, Terry Oraha, Treetopclimes, William S, zl28 and 194 guests