ToddL
New Member

Get your taxes done using TurboTax

This sounds a little sketchy to me, as well. 

If this was a reimbursement of after-tax funds you overpaid, you can eliminate the tax effect by entering an offsetting "cost in "other Income.

To report the 1099-MISC "income" (you've already done this):

  • Enter the 1099-Misc in the Other Common Income section (Enter "1099misc" in the Search Box and Select "Jump to 1099misc")
  • Indicate that it is a "Reimbursement for Overpayment", that it does not involve work like your main job, and that it did not involve an intent to make money, and is not a recurring payment (received in the past or expected in the future). 

The "income" will be reported on line 21 of your return (already done).

To enter the "cost":

  • Go to Less Common Income, Miscellaneous Income and Other reportable income (enter "other reportable income" in the Search Box and Select "Jump to other reportable income")
  • Continue to the screen "Other Taxable Income". Enter the description as "Overpayment" and the amount as a negative number. These are NOT wages.

A corresponding negative amount will be entered, and line 21 will be zero. See the attached screenshot example (different descriptions, but still offsetting). 

This is the correct way to report a reimbursement. Chase is not likely to issue a corrected 1099-MISC. 

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