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Level 2

employer overpaid

I am a physician, and I left my practice Dec 2016.  I received 75 thousand from the practice for billing that I was owed.  The payment came in Feb 2017.  I was paid via 1099 MISC.  Owner of practice then said I was overpaid.  I paid the practice back apx. $8,500.00  The 1099 does not reflect this.  How do lower my tax obligation of this "income" that I technically never received?

1 Comment
Employee TurboTax Specialist

employer overpaid

If you were paid by 1099-MISC with the $75,000 in box 7, then you are eligible to file Schedule C. You might not need the complete Home & Business version of TurboTax, some of the lower versions let you file a limited amount of self-employment income.


In any case, you will want to follow the instructions in this detailed answer by TurboTaxKatrinaB. List the 1099-MISC as income for your "business" and then list the $8,500 as a refund (see pictures). This will reduce your taxable income.


Some of the comments to that answer noted that some users said that they could not see the refund option. I can see it on the TurboTax Premier Online product and on the Home & Business desktop version. It would not shock me if the Free version did not have it and that you might have to upgrade to see it.