Overpayment

[JETX]

The employer only wants the after tax money now...basically what was deposited in my account.. so, I am assuming they will send me a W-2 that states i recieved the total amount of money, eventhough i returned half of it...Should I ask for an updated W-2 or can I in my taxes show that I returned some of the money eventhough the W-2 states otherwise.

The W-2 should show the correct amounts withheld (including the returned portion) and the correct amount earned (without the returned funds).

 

[daallstar]

The W-2 should show the correct amounts withheld (including the returned portion) and the correct amount earned (without the returned funds).

just to clarify, you're saying the gross income should be the amount the company paid me minus what i returned, and the withheld should reflect the actual withheld, which is based on what the company had orginally paid me.

 

[anteater]

If you repay them before their last payroll period in 2004, then they should give you a W-2 that reflects what you actually earned and the withholding on those earnings.

There is an IRS Revenue Ruling out there that involves overpayments/repayments that span tax years. I don't recall the details, but it isn't pretty, involving amended W-2's, amended tax returns, etc. If you don't repay them until 2005 and they follow that Revenue ruling, you might well become good friends with H&R Block. So, try to repay this tax year.

And start reconciling your checking account each month!

 

[pattytx]

It sounds like you have repaid half of the net pay. Did the overpayment occur this year or last? And did you repay it in the same year as it occurred?