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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.
‎June 6, 2019
11:15 AM