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irc 1341 - PARTIAL REPAYMENT OF W-2 DISABILITY INCOME 2019, REPAID IN 2020

lovetaxes
Level 3

IN 2019 MY CLIENT'S WIFE WAS RECEIVING DISABILITY PAYMENTS FROM MET DISABILITY UNTIL SHE PASSED AWAY IN SEPTEMBER OF THAT YEAR. IN 2020 MET DISABILITY ASKED FOR A PORTION OF THAT MONEY BACK, FOR THEY STATED THEY OVERPAID THE BENEFITS OF HER PLAN.

MY CLIENT REPAID $3,808.78 IN 2020. METLIFE/MET DISABILITY, SENT HIM A LETTER STATING THAT HE SHOULD APPLY FOR A REFUND IN THE AMOUNT OF TAXES THAT HAD BEEN PAID IN 2019 ON THAT W-2. I COMPUTED THE TAX AT $958.

I ENTERED THAT AMOUNT ONTO SCHEDULE 3 OF THE FORM 1040 UNDER IRC 1341 REPAYMENTS, HOWEVER, I SUSPECT IRS IS GOING TO WANT AN EXPLANATION BEFORE CONSIDERING THIS AMOUNT AS A LEGITIMATE REQUEST.

IS THERE SOMETHING I SHOULD DO TO EXPLAIN? FOR INSTANCE IF I FILLED OUT A FORM 843 AND PDF'D THAT FORM TO ACCOMPANY THE RETURN, WOULD THAT SATISFY IRS??

AS ALWAYS, I SINCERELY APPRECIATE ANY ASSISTANCE THE COMMUNITY PROVIDES.

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Just-Lisa-Now-
Level 15
Level 15

You may want to keep a note in the file as to how you arrived at the amount in case its ever questioned.  This is an example from Pub 525 on repayments and how to come up with the figure

repayments.png


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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3 Comments 3
BobKamman
Level 15

You really think IRS has anyone looking at things like that?

You know what the Internet abbreviation "ROFL" means?

Follow the instructions, finish the return, move on to the next one.  Time's a-wastin'.

0 Cheers
Just-Lisa-Now-
Level 15
Level 15

You may want to keep a note in the file as to how you arrived at the amount in case its ever questioned.  This is an example from Pub 525 on repayments and how to come up with the figure

repayments.png


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
lovetaxes
Level 3

I appreciate everyone who've been kind enough to offer information on issues that don't often come across my desk and having the ability to share experiences on this site has been worth the higher cost for my software.

Thank you Just-Lisa-Now- for taking the time to respond to this issue. I hope I can return the favor some day, perhaps after I get smarter than I feel tonight!

Take care and stay healthy,

Bob