Tax Law (Questions About Taxes)/repayment of wages $800
Hello. In 2011, my company inadvertantly overpaid me by $800 when they changed from a monthly payment schedule to a bi-weekly pay schedule. Upon my departure from the company in 2013, they made me pay back that $800 via a check. My 2013 W2 does NOT reflect the $800 I paid them. If I deduct this $800 as an itemized deduction on Schedule A, it is subject to the 2% rule, and I would get zero dollars back....which hardly seems fair.
Technically, I should be receiving about $200 back. Section 525 of the IRS code does not make it clear if I HAVE to use schedule A (subjet to the 2% rule), or if I can just reduce my W2 wages by $800 for 2013. If I reduce my wages by $800, my net benifit to me is $200. What is the correct way to do this? Thanks.
Have you contacted the company to determine which W-2 they will be correcting for the error.
One of the w-2's has an error. They must correct one or the other. Either the 2011 or the 2013. I do not believe that you should absorb the cost of your employment by reporting the overpayment on your schedule A.